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SMM Lead Market Morning Review (2015-4-13)
Apr 13,2015 10:07CST
price review forecast
LME lead prices opened at USD 1,962.5/mt during Asian trading hours.

SHANGHAI, Apr. 13 (SMM) – LME lead prices opened at USD 1,962.5/mt during Asian trading hours. China’s March CPI was flat on the month, and PPI drop narrowed for the first time over the last eight months. LME lead prices climbed to as high as USD 2,006.5/mt. Richmond Fed Chairman predicts the Fed will hike interest rate in June, allowing the US dollar index to rise, weighing down base metals prices. LME lead prices dropped and closed at USD 1,993/mt, up USD 26.5/mt. Trading volumes increased 1,747 to 6,688 lots, and total positions grew 455 to 136,311. LME lead inventories fell 1,550 to 221,575.

SHFE 1506 lead contract prices opened at RMB 13,450/mt last Friday evening, reaching as high as RMB 13,500/mt and closing at RMB 13,350/mt, up RMB 320/mt. Trading volumes were 16,544 lots, and total positions grew 1,348 to 19,654.

Investors will no longer be restricted to only one stock account in China's A-share market and each can have up to 20 accounts from Monday, the managing institution for stock accounts said on Sunday. This should inspire domestic stock markets. The number of original members of the Asian Infrastructure Investment Bank increased to 46. When combined with the “One Belt One Road” plan, demand for base metals is expected to improve.

However, the US dollar index hovers around 99, constraining any base metals price gains. Greek crisis will continue to plague the market.

Crude oil prices were around USD 50/bbl, with high inventories. Global stocks markets mostly rose; precious metals prices increased. LME base metals prices ticked up slightly.

LME lead prices should fluctuate between USD 1,970-2,000/mt today. SHFE 1506 lead contract prices will hover between RMB 13,200-13,400/mt, with spot lead prices in Shanghai between RMB 13,200-13,300/mt.

LME lead prices

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