SMM Lead Market Morning Review (2013-7-16)

SHANGHAI, Jul. 16 (SMM) – LME lead prices opened at USD 2,061/mt on Monday and showed no significant change in Asian trading hours as China’s Q2 GDP growth was in line with market expectation. Later, the weakening US dollar sent LME lead prices to an intraday high of USD 2,078/mt, but the US retail sales for June grew 0.4%, slower than the 0.7% expected and the 0.6% in May, and several investment banks slashed the US Q2 GDP forecast, driving down LME lead prices. However, the rebounding euro helped support LME lead, with prices finally ending at USD 2,055.8/mt, down USD 11.3/mt. Trading volumes fell 616 lots to 2,255 lots, and positions increased 22 lots to 193,950 lots.

 

The US dollar index hovered at 83 and closed at 83.07, and COMEX silver for September delivery closed at USD 19.89/oz.

 

On Tuesday, the most active SHFE 1309 lead contract price is expected to start slightly lower and move between RMB 13,850-13,900/mt, and spot lead prices in China may stay at RMB 13,650-13,750/mt.