SHANGHAI, Jun. 19 (SMM) – LME lead prices bottomed out Tuesday after opening at USD 2,116/mt. The US dollar index fluctuated up and LME copper prices dropped in Asian trading hours, driving LME lead to give back the gains since last Friday and hover around USD 2,100/mt. Later, the US housing starts were reported up 6.8% to 914,000 in May, but fell behind the 11.4% rise expected, while building permits fell 3.1% to 974,000, resulting in another decline in LME lead prices to USD 2,082/mt. However, the worse-than-expected housing data and the inflationary level well below the Fed’s goal cooled investors’ expectation for the termination of QE, so LME lead prices stopped falling and regained earlier losses to end at USD 2,106.5/mt. Trading volumes increased 1,240 lots to 3,996 lots, while positions were down 822 lots to around 123,000 lots. 

 

The US dollar index fell after initial rises and closed at 80.68. COMEX silver for July delivery fell USD 0.1/oz to USD 21.7/oz. 

 

On Wednesday, the most active SHFE 1307 lead contract price is expected to move lower to RMB 13,925-14,000/mt, and spot lead prices may be RMB 13,800-13,900/mt with downstream buyers still purchasing as needed.