SHANGHAI, Oct. 16 (SMM) – LME lead contract prices overnight started at USD 2,132/mt in Asian trading hours when the US Senate reportedly reached an agreement. The prices first fell back to test the support of the 60-day moving average, hitting as low as USD 2,124/mt but later moved up. During the European and US trading session, a fresh plan proposed by House Speaker John Boehner was rejected again by US President Obama and the Senate. As the US debt limit deadline draws near, Fitch Ratings has placed the US on Rating Watch Negative (RWN) because of no progress in the debt ceiling talks and warned it may cut the sovereign credit rating from AAA. As a result, investors were depressed on financial markets. LME lead prices, however, maintained the rising momentum, reaching as high as USD 2,150/mt, and finally ended the day at USD 2,147.3/mt, up USD 12.3/mt. Trade volumes shrank by 1,088 lots to 4,463 lots, while positions declined by 311 lots to 123,063 lots. LME lead inventories shed by 2,000 mt to 233,675 mt.
The US dollar index inched up 0.16% to 80.45, while the COMEX silver contract for December delivery eased by USD 0.064/oz to USD 21.29/oz.
On Wednesday, the news that Fitch Ratings has placed the US on RWN will further exacerbate market worries. LME lead prices will fluctuate between USD 2,130-2,150/mt, while the most-traded SHFE lead contract prices will move in RMB 14,200-14,300/mt range on Wednesday. In Shanghai spot lead market, prices will be flat between RMB 14,050-14,150/mt.