SHANGHAI, Oct. 15 (SMM) – LME lead prices overnight met resistance at USD 2,100/mt in Asian trading hours after weekend’s talks between the US Republicans and Democrats failed to strike a deal. However, a slew of China’s upbeat economic data released later helped drive up LME lead prices marginally. Specifically, China’s CPI rose to a seven-month high of 3.1% from a year earlier in September. But few expect Chinese government to tighten monetary policy on the sharp rise in CPI. The September PPI fell 1.3% from the previous year, a smaller fall compared with the drop in August. China's electricity consumption increased 10.4 % YoY in September, the second sharp gains so far this year. Besides, China’s new bank loans exceeded previous expectations to reach RMB 787 billion in September. During the European and US trading session, negotiations between Senate Majority Leader Harry Reid and Senate Republican leader Mitch McConnell proved meaningful and would continue to be in place. Both leaders were optimistic that an agreement would be reached, easing market risk aversion significantly. In this context, LME lead prices trended up to as high as USD 2,138/mt and finally ended at USD 2,135/mt, with a rise of USD 30/mt. Trade volumes expanded by 1,834 lots to 5,551 lots, while positions gained by 1,094 lots to 123,374 lots. LME lead stocks shed by 1,050 mt to 235,675 mt.
SMM Lead Market Morning Review (2013-10-15)