SHANGHAI, May 12 (SMM) – Monday night, LME lead opened at USD 2,040/mt and lurched down to end at USD 2,012.5/mt, down USD 36/mt, after hitting a high of USD 2,062.5/mt. Trading volumes were down 801 lots while positions rose 1,893 to 155,632. LME stocks decreased 400 to 162,750 mt. LME found support at USD 1,980/mt.
SHFE 1507 lead dived to RMB 13,360/mt after opening at RMB 13,450/mt last night. Then the contract held at RMB 13,400/mt and finally finished down RMB 110/mt at RMB 13,395/mt.
The market was lacking in news on Monday. The PBOC’s interest rate cut came as no surprise and failed to add support to metals. Market players tended to be cautious.
Greece debt crisis overshadowed the market again Monday night. Greek Ministry of Finance announced to pay EUR 0.75 billion to IMF in several hours before deadline, easing market’s concern over Greece’s default and bankruptcy. But according to New York Times, Greece has to pay IMF near EUR 3 billion middle July and the European Central Bank EUR 6.7 billion in July or August. Greece will not be helpful in reviving economy and alleviating unemployment rate. Therefore, Greece debt crisis will still risk euro zone in the future.
New York crude oil dropped 0.2% to USD 59.25/bbl; gold price fell 0.5% to USD 1,183/oz. European stocks rose 0.3% whereas Greek stocks fell 2.5%. US dollar index climbed 0.27% to 95.02. LME base metals slipped across the board.
LME lead should move at USD 1,980-2,030/mt and SHFE 1507 lead will be traded between RMB 13,320-13,450/mt and spot lead RMB 13,500-13,650/mt.