SHANGHAI, Oct. 29 (SMM) – LME lead prices overnight started at USD 2,198/mt in Asian trading hours. Despite positive expectations over reform policies in the upcoming Third Plenary Session of the 18th Central Committee of CPC, investors remain wary of the lingering tight liquidity, sending LME lead prices down to USD 2,191/mt. During the European and US trading session, a large amount of capital flooded into the market, while the US September pending home sales index dropped 5.6% MoM, the largest one-month decline in more than three years. With no major news, investors continued to speculate on the possible delay of the US Fed tapering. LME lead prices finally ended at USD 2,206.3/mt, up USD 8.5/mt after peaking USD 2,218/mt. Trading volumes were off 130 lots to 4,866 lots, while positions added 4,866 lots to 124,405 lots, and LME inventories shrank 1,800 mt to 232,925 mt.

The US dollar index inched up 0.16% to 79.34, while the COMEX silver contract for December delivery eased USD 0.139/oz to USD 22.5/oz.

With no significant news on Tuesday, LME lead prices will continue to perform weaker in Asian trading hours than in the European and US trading session. LME lead prices will possibly fluctuate between USD 2,190-2,210/mt, while the most active SHFE lead prices are expected to hover in RMB 14,400-14,500/mt range. In China’s spot lead market, lead prices are expected to hold flat between RMB 14,200-14,350/mt on Tuesday.