SMM Lead Market Morning Review (2013-6-7)

SHANGHAI, Jun. 7 (SMM) – LME lead prices fell USD 32.8/mt or 1.47% to USD 2,197.3/mt Thursday, giving back all the gains this week. The Bank of England announced to keep June’s interest rate unchanged, within market expectation. The Chief of the European Central Bank Draghi did not hint at further easing policies, driving the euro to rise to 1.33 against the dollar, giving certain support to LME lead. Later, however, the ECB cut 2013 economic growth forecast for the eurozone from -0.5% to -0.6%. Furthermore, the US initial jobless claims were reported higher than expected in May, and ISM manufacturing and non-manufacturing index kept falling. That, combined with falling ADP which trigger market concerns over poor nonfarm payroll data, drove investors to book profit and exit the market. Thus, LME lead price dropped sharply. Trading volumes increased 1,211 lots to 6,968 lots, and positions increased 1,634 lots. LME lead inventories fell another 2,650 mt to 207,750 mt. 

 

 

The US dollar index tumbled 1.25% to touch a low of 81.08 before closing at 81.5, its lowest since February 25 this year. COMEX silver for July delivery remained low and closed at USD 22.17/oz, edging up USD 0.235/oz or 1.05%.

 

On Friday, the most active SHFE 1306 lead contract price may move between RMB 13,950-14,050/mt, with spot lead prices expected at RMB 13,850-13,950/mt.