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SMM Lead Market Morning Review (2014-4-1)
Apr 1,2014 09:23CST
price review forecast
Source:SMM
LME lead prices are set to move between USD 2,055-2,080/mt on Tuesday, while the most active SHFE 1405 lead contract price is forecast to hover between RMB 13,710-13,850/mt.

SHANGHAI, Apr. 1 (SMM) – LME lead prices overnight essentially hovered above the opening mark after starting at USD 2,067/mt, and closed up USD 5/mt, or 0.24%, at USD 2,070/mt. Trading volumes shed 247 lots to 2,806 lots, positions gained 97 lots to 137,324 lots, and LME lead inventories contracted 50 mt to 200,325 mt.

Fed Chief Janet Yellen said Monday that large numbers of partly unemployed workers, stagnant wages, lower labor-force participation and longer periods of joblessness show that “there remains considerable slack in the economy and the labor market”. The dovish comments boosted the US stocks, with the dollar swinging sharply.

In Europe, the euro zone CPI for March dropped 0.5% YoY, lower than the 0.6% expected and February’s 0.7%, to hit its lowest since November 2009. The further decline in inflation rate was partly because the Easter Day came later than usual this year. Besides, price rises for industrial goods outside the energy sector were very modest in March. This has raised expectations that the European Central Bank will introduce further easing policies at Thursday’s policy meeting.

In China, Zhou Xiaochuan, the PBOC governor said the central bank had no plan to lower the RRR against a series of negative news lately. Besides, the State Council may issue the suggestions on further protecting legal rights and interest of small and medium investors capital market, which may benefit money market for the long run.

US stock rose on Monday, while European equities dropped. LME base metals, except for copper and tin, all increased.

US nonfarm payrolls report is expected to come in positive on Friday, helping boost market sentiment. China’s official manufacturing PMI and HSBC’s China manufacturing PMI both are forecast to be negative, fueling speculation that the Chinese government may unveil stimulus programs to shore up its slowing economy. LME lead prices are set to move between USD 2,055-2,080/mt on Tuesday, while the most active SHFE 1405 lead contract price is forecast to hover between RMB 13,710-13,850/mt. In China’s physical lead markets, traded prices will be mostly in a RMB 13,650-13,750/mt band on Tuesday.
 

LME lead prices
SHFE lead prices
spot lead prices

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