SHANGHAI, Feb. 10 (SMM) – LME lead overnight started at USD 1,852/mt and then hovered around USD 1,845/mt in the Asian trading session. During European trading hours, the price of the soft metal advanced to USD 1,870/mt, boosted by a rebound in crude prices, but fell afterwards to close down USD 1.5/mt at USD 1,850.5/mt. Trading volumes for three-month lead on the London Metal Exchange added 226 lots to 2,875 lots, while positions gained 64 to 117,605. LME lead inventories shed 650 mt to 213,600 mt.
Lead for April delivery on the Shanghai Futures Exchange, the most active contract edged down RMB 5/mt in Monday’s night session, Trading volumes for the SHFE 1504 lead contract totaled 856 lots, while positions decreased 20 to 16,686. Trading volumes for all SHFE lead contracts amounted to only 1,034 lots.
The US Federal Reserve’s Labor Market Condition Index (LMCI), published on Monday, was 4.9 in January. The index for December was revised up sharply from 6.1 to 7.3. Overall, the US labor market continues to improve.
Greece’s prime minister Alexis Tsipras reiterated on Monday that the government refuses to accept further international bailout programs, stoking concerns over the country’s political situations. Greek stocks tumbled almost 5%, while Germany and Italy’s stocks fell nearly 2%. Spain and Italy’s yield differentials on government bonds expanded to a renewed 4-month high.
The Organization of Petroleum Exporting Countries (OPEC) cut its expectation for daily output of non-OPEC members by some 400,000 barrels and that of US by 130,000. Crude oil prices responded by rising 2.26% on Monday.
The US dollar index fell 0.12%, while the euro rose 0.09% against the greenback. Major European and US stocks declined across the board. LME base metals were mixed on Monday.
LME lead is expected to move at USD 1,840-1,870/mt, while the most active SHFE 1504 lead contract is set to hover at RMB 12,480-12,580/mt on Tuesday. Spot lead prices in China should be RMB 12,500-12,600/mt.
