SHANGHAI, Oct. 30 (SMM) – LME lead prices overnight opened at USD 2,200/mt in morning trading session and later basically hovered around this price mark for lack of any major news in Asian trading hours. In the evening, the US retail sales slide 0.1% in September, lower than increases of 0.2% in August, while the US September Producer Price Index rose 0.3%, far less than August’ 1.4% and estimate of a 0.6% rise. These downbeat US economic data fueled expectations that the US Federal Reserve will delay tapering of its current bond purchase scheme until 2014, pushing LME lead prices up to USD 2,216/mt. Later on, the US Conference Board’s Consumer Confidence Index in October reached 71.2, dramatically lower than forecast and September’s level. extending losses in non-US currencies. LME lead prices gave back earlier gains as the US dollar advanced. LME lead prices finally ended USD 12.3/mt lower at USD 2,194/mt. Trading volumes shed 1,665 lots to 3,201 lots, while positions gained 566 lots to 125,000 lots.
The US dollar index rallied dramatically to finish at 79.6, while the COMEX silver contract for December delivery came under downward pressure at the 5-day moving average and closed down at USD 22.51/oz.
On Wednesday, markets will eye the development of US Fed’s interest rate meeting, while the non-US currencies are under corrections. LME lead prices are expected to move in USD 2,190-2,220/mt range, while the most active SHFE 1312 lead contract prices are set to fluctuate between RMB 14,380-14,460/mt. In China’s spot lead markets, lead prices are forecast to trade mostly between RMB 14,200-14,300/mt and downstream producers will still have low buying interest on Wednesday.