SMM Lead Market Morning Review (2013-11-21)

SHANGHAI, Nov. 21 (SMM) – LME lead price overnight started at USD 2,092.3/mt in Asian trading hours, on hopes of the US Federal Reserve maintaining its easy monetary policy. Combined with upside technical indicators and increased bulls, LME lead bounced back to USD 2,100/mt, standing above the 5-day moving average. During European and the US trading session, market expectations of the European Central Bank’s loose policy were dramatically buoyed by proposals on negative deposit rate by two Governing Council members of the bank. The US retail sales surged by 0.4% in October from a month ago, while its existing home sales fell to the lowest in five months. Despite these mixed data, markets were dominated by anticipations of easy monetary policies. LME lead price finally closed the day at USD 2,097/mt, up USD 3/mt. Transactions shed 1,085 lots to 3,309 lots, while positions fell 737 lots to 119,982 lots and LME lead stocks contracted 525 mt to 234,900 mt.  

 

The US dollar index soared 0.47% to 81.03, while the COMEX silver contract for December delivery eased USD 0.49/oz to USD 19.84/oz. 

 

On top of a boost from China manufacturing PMI, metals market will digest the minutes of the Federal Reserve's October meeting. LME lead price is expected to move between USD 2,070-2,100/mt, while the most active SHFE lead price is forecast to fluctuate in a RMB 13,900-14,000/mt band and spot lead price will hover between RMB 13,850-14,000/mt on Thursday.