SMM Lead Market Morning Review（2015-4-27）

SHANGHAI, Apr. 27 (SMM) – LME lead opened at USD 2,038.5/mt Friday’s Asian trading hours and then climbed as high as USD 2,085/mt. LME lead closed at USD 2,073.5/mt, up USD 40.5/mt, gaining 1.99%. Trading volumes dropped 24 lots to 4,525 lots and positions increased 395 to 145,829. LME lead inventories fell 3,900 mt to 183,975 mt.

Eyes will be on China’s Q1 above-scale industrial profits due out Monday. Lead is expected to be strong today on weak US dollar. Yuguang Gold & Lead Co. and Jinli Gold & Lead Co. will resume operation by the end of this month and early next month, but it takes some days before their products enter the market. In addition, traders refrained from selling before, lending support to spot lead prices.

Last Friday’s weak US economic indicators pushed down US dollar index and allowed metals prices to rebound. US March durable goods orders increased 4% on the month, higher than the expected 0.6%. However, March durable goods orders, excluding transports and nondefense capital goods excluding aircraft were downbeat, pointing to US investors’ weak confidence. Then Deutsche Bank dropped US Q1 GDP expectation to 0.7% from 1.7%, weighing down US dollar index.

China’s Deputy Director of Investment Department of the National Development & Reform Commission reported to start new major projects recently, supporting metals. China’s first state-owned enterprise default turned better with the help of People’s Bank of China.

European and American stocks all increased. But US dollar and crude oil prices dropped. LME base metals prices all climbed.

LME lead is expected to hover between USD 2,055-2085/mt Monday. SHFE 1506 lead, the most active contract, is expected to move between RMB 13,600-13,710/mt. And China’s spot lead is expected to increase to RMB 13,550-13,700/mt.