SHANGHAI, Jun. 20 (SMM) – LME lead prices opened at USD 2,102.3/mt Wednesday and market waited for the result of the Fed’s policy meeting and Bernanke’s remark in Asian trading session. Some investors cut positions to mitigate risks before the Fed policy meeting, dragging down LME lead prices. Later, the Fed decided to keep the benchmark interest rate and the asset purchasing program unchanged, which is in line with market expectation. However, Bernanke later said it is possible the Fed will start winding down the asset purchasing later this year. The Fed’s optimism to economic outlook drove the US dollar index to rise above 81, and LME lead prices fell to end at USD 2,070.3/mt as a result, down USD 36.3/mt or 1.72%. Trading volumes increased 1,047 lots to 5,043 lots, and positions were down 4,723 lots to some 119,000 lots. LME lead inventories surged 15,575 mt to 204,625 mt, indicating that the continuous falls in inventories previously were not the result of actual improvement in demand.
The US dollar index closed at 81.3. COMEX silver for July delivery fell USD 0.1/oz to USD 21.6/oz.
On Thursday, SHFE 1307 lead contract price may move between RMB 13,850-13,930/mt, with spot lead prices expected at RMB 13,800-13,900/mt.