SHANGHAI, Oct. 25 (SMM) – LME lead prices overnight started lower at USD 2,160/mt in Asian trading hours. HSBC China manufacturing PMI released in Thursday’s morning reached 50.9, up from September’s 50.2, improving market risk appetite. As a result, LME lead prices reached USD 2,176/mt. During the European trading session, however, LME lead prices were subdued by heavy sell-offs, dipping to a low of USD 2,153/mt. Despite mixed data released later by European countries and US, investors remained bullish to the euro, pushing up the euro to a record high against the dollar. In response, LME lead prices edged up and finally closed at USD 2,180/mt, up USD 15/mt. Trading volumes shed by 729 lots to 4,528 lots, positions gained by 2,488 lots to 123,564 lots, and LME inventories shrank by 200 mt to 232,225 mt.
The US dollar index dropped further to 79.79, while the COMEX silver contract for December delivery finished at USD 22.71/oz, up USD 0.093/oz.
On Friday, markets will remain under the impact of China’s tight liquidity and the report of restarting reviews of IPO applications, while shorts investors will lose some momentum after sell-offs in previous two days. LME lead prices are expected between USD 2,150-2,180/mt. The most-traded SHFE lead prices will fluctuate in RMB 14,350-14,450/mt range, and spot lead prices are expected to hold flat at RMB 14,200-14,300/mt on Friday.