SHANGHAI, Nov. 20 (SMM) – LME lead prices overnight rose to USD 2,080/mt tentatively in morning trading after starting at USD 2,077/mt in Asian trading hours, but dipped to USD 2,068/mt due to sell-offs in afternoon trading. During European and the US trading session, the US Federal Reserve Chairman Ben Bernanke said the Fed is committed to ultra-easy monetary policy as long as needed. Janet Yellen, Bernanke’s nominated successor, also reiterated support for the Fed’s QE policy in her letter to the Senators. In response, the US dollar was subdued, pushing up LME lead prices to a high of USD 2,097.8/mt. LME lead finally ended the day at USD 2,094/mt, up USD 14/mt. Trading volumes rose 276 lots to 4,394 lots, while positions fell 1,895 lots to 120,719 lots and LME lead stocks shrank 700 mt to 235,425 mt. Markets should pay special attention to the Fed’s minutes due for release late on Wednesday.
The US dollar eased 0.11% to 80.65, while the COMEX silver contract for December delivery fell USD 0.055/oz to USD 20.33/oz.
Markets will be relatively bullish on expectations of the Fed maintaining its QE policy and are waiting for the Fed’s minutes to be released on Wednesday. LME lead prices will fluctuate between USD 2,080-2,110/mt, while the most active SHFE lead prices are forecast to move between RMB 14,000-14,100/mt and spot lead prices are expected at RMB 13,900-14,050/mt.