SMM Lead Market Morning Review (2013-6-27)

SHANGHAI, Jun. 27 (SMM) – LME lead prices fell to USD 2,020/mt after opening at USD 2,046.5/mt in Asian trading hours Wednesday due to rising US dollar, but gained support at the 5-day moving average. The chairman of European Central Bank Draghi announced to maintain the easing policies later, lifting market confidence, with LME lead rallying to USD 2,050/mt. But the US Q1 GDP data was revised lower to 1.8% unexpectedly from the preliminary 2.4%, while the US dollar continued to trend up. Thus, LME lead prices finally closed at USD 2,030/mt. Trading volumes fell 1,723 lots to 4,455 lots, and positions were down 311 lots to 122,000 lots. LME lead inventories increased 400 mt to 194,600 mt.

 

The US dollar rose above 83 before finally closing at 82.9. COMEX silver for September delivery slumped USD 1/oz or 5.1% to USD 18.6/oz.

 

On Thursday, the SHFE 1309 lead contract price is expected to move between RMB 13,900-13,970/mt, and spot lead prices should be RMB 13,700-13,800/mt