SHANGHAI, Mar. 21 (SMM) – LME lead opened at USD 2,371/mt overnight. The US Fed announced last night that it will keep interest rate unchanged at 0-0.25% and continue to buy assets each month, which is in line with expectations. However, no new policy came out from the US Fed’s interest rate meeting, so the US dollar index slipped only slightly below 83. Finally, LME lead closed at USD 2,184/mt. Trading volumes decreased 3,412 lots to 4,172 lots, while positions were also down 738 lots to 117,000 lots. LME lead inventories fell 2,925 mt to 271,475 mt.
In other markets, the US dollar index edged down and closed at 82.8. COMEX silver for May delivery finished at USD 28.8/oz. Market direction is cloudy due to the struggle between longs and shorts.
Markets are cautious ahead of the upcoming announcement of manufacturing PMI from China, Europe and the US as well as initial weekly jobless claims in the US. LME lead should move within USD 2,170-2,200/mt, while SHFE 1305 lead contract prices will hover between RMB 14,500-14,600/mt after a slightly higher opening today. In spot lead markets, spot lead prices are expected between RMB 14,400-14,550/mt. Producers will continue to buy on an as-needed basis.