SHANGHAI, Nov. 22 (SMM) – LME lead price overnight was restrained after starting at USD 2,090/mt in Asian trading hours, as markets were digesting the US Federal Reserve’s October meeting on QE policy. The preliminary HSBC China manufacturing PMI came at 50.4 in November, lower than October’s level and forecast. LME lead touched a low of USD 2,080/mt in afternoon trading. In European trading session, the German November manufacturing PMI grew to 52.5, beating the estimated 52, while the Eurozone PMI readings remained flat. The head of the European Central Bank, Mario Draghi, argued that the possibility of negative rates was quite low, giving a boost to the euro. In response, LME lead price rebounded and finished at USD 2,088/mt, down USD 9/mt. Transactions expanded 2,000 lots to 5,309 lots, while positions contracted 1,364 lots to 118,618 lots. LME lead inventories shed 775 mt to 234,125 mt.
The US dollar index initially surged, but later fell back to end flat at 81.03, while the COMEX silver contract for December delivery nudged up USD 0.11/oz to close at USD 19.95/oz.
An absence of major news and growing risk aversion sentiment at the weekend will leave lead market in range-bound trading. LME lead price is set to move in a narrow range of USD 2,080-2,100/mt, while the most active SHFE lead price is forecast to hover between RMB 13,950-14,000/mt. In China’s spot lead market, traded price will hold flat between RMB 13,900-14,000/mt on Friday.