SHANGHAI, Oct. 17 (SMM) – LME lead prices overnight slid after starting at USD 2,145.5/mt and reached as low as USD 2,110/mt amid the impasse over the US debt limit talks and the slumping Shanghai Composite Index. Late in the evening, a plan by the Senate was strongly endorsed by Senators and the White House and was expected to pass the Senate vote. House Speaker John Boehner also indicated he would not deter the agreement to lift the US debt limit although he would continue to fight against President Obama’s signature health care law. As such, market risks were alleviated significantly, helping LME lead prices regain early losses. Later on, the prices further climbed to USD 2,170/mt and finally ended at USD 2,169/mt, up USD 21.8/mt.
The US dollar index closed basically flat at 80.46, while the COMEX silver contract for December delivery finished USD 0.219/oz higher to USD 21.41/oz.
The improvement in US debt limit talks has given a boost to the market. LME lead prices are expected to fluctuate in USD 2,160-2,190/mt range, while SHFE lead prices will possibly hover between RMB 14,300-14,400/mt on Thursday. Spot lead prices will be in RMB 14,100-14,250/mt range on Thursday with transactions light, as downstream producers are expected to stay on the sidelines following a sharp rally of spot prices.