SHANGHAI, Oct. 28 (SMM) – LME lead prices started at USD 2,177/mt in Asian trading hours on Friday. Later on, the market saw increasing sell-offs amid market worries from a new rally of China’s overnight interest rate in afternoon trading hours and the news of restarting reviews of IPO applications, sending LME lead prices down to USD 2,160/mt. During the European and US trading session, the US September durable goods orders rose 3.7% MoM, the largest gains in three months, but were largely boosted by surging orders from the Boeing Company. In contrast, the US core durable goods orders dropped from a month earlier. The University of Michigan's final reading on the consumer-expectations index fell to 62.5 in October and was the lowest final reading since November 2011. In this context, expectations on the delay of the US Federal Reserve’s QE tapering went high again. LME lead prices finally closed at USD 2,197.8/mt, up USD 17.8/mt after climbing above USD 2,200/mt. Trading volumes gained 468 lots to 4,996 lots, while positions shed 268 lots to 123,296 lots and LME inventories shrank 1,100 mt to 231,125 mt.
The US dollar index was basically flat at 79.21, while the COMEX silver contract for December delivery eased USD 0.232/oz to USD 22.59/oz.
The downbeat US economic data once again has rekindled markets expectations for the delay of US QE tapering. Besides, a new round of China’s reform released at the end of last week and upbeat September industrial profit margins will give a boost to the markets on Monday. LME lead prices will fluctuate in USD 2,180-2,220/mt range, while SHFE lead prices will move between RMB 14,400-14,500/mt and spot lead prices are expected between RMB 14,200-14,350 on Monday.