SMM Lead Market Morning Review (2015-4-9)

SHANGHAI, Apr. 9 (SMM) – LME lead prices opened at USD 1,901/mt during Asian trading hours, then fluctuated around USD 1,900/mt. Fed officials took a mixed attitude when the Fed will raise interest rates. The US dollar index increased. US crude oil inventories grew 10.95 million bbl last week, the largest weekly gain since March 2001, pushing down crude oil prices and weighing on base metals prices. LME lead prices, however, strengthened and touched as high as USD 1,928/mt, and closed at USD 1,920.5/mt, up USD 21.5/mt. Trading volumes decreased 368 to 4,548 lots, and total positions grew 1,725 to 140,323. LME lead inventories fell 7,525 to 223,850.

SHFE 1506 lead contract prices opened at RMB 12,715/mt Wednesday evening, then inched up and closed at RMB 12,790/mt, up RMB 80/mt. Trading volumes were 1,606 lots, and total positions grew 210 to 14,620.

The Fed is expected to hike interest rate in June, boosting the US dollar index

Euro zone retail sales data dropped, meaning weakening household spending despite falling crude oil prices. Greece will pay EUR 458 million to the IMF today.

China’s State Council announced to lower coal-fired power, industrial and commercial power prices, which will positively affect commodity-related companies but will weigh on base metals prices, especially for aluminum.

The US dollar index rose. European stocks mostly fell, while US stocks markets climbed across the board. LME base metals prices followed their own trends, with LME lead prices strong.

LME lead prices should fluctuate between USD 1,910-1,940/mt today. SHFE 1506 lead contract prices will hover between RMB 12,700-12,850/mt, with spot lead prices in Shanghai between RMB 12,650-12,800/mt.