SHANGHAI, Jun. 5 (SMM) – LME lead prices fell after opening at USD 2,219.5/mt during Asian trading hours Tuesday due to the 1.17% decline in Chinese stocks. Later, the US announced its trade deficit continued expand with April’s figure up 8.5% MoM to USD 40.3 billion, which, however, is slightly better than the USD 41 billion expected. The rising trade deficit drove the US dollar below the 60-day moving average, so LME lead prices rose along with other base metals and regained earlier losses to close at USD 2,235.5/mt, up USD 19.3/mt. Trading volumes fell 1,441 lots to 6,323 lots, and positions were up 3,075 lots to around 114,000 lots. LME lead inventories fell 3,450 mt to 213,550 mt.
The US dollar index continued to fall and ended at 82.759. COMEX silver for July delivery fell USD 0.312/oz to USD 22.41/oz.
On June 5, SHFE 1307 lead contract price may move between RMB 14,050-14,150/mt, and spot lead prices are expected to be RMB 13,850-13,950/mt and will unlikely break through RMB 14,000/mt in the short term.