SHANGHAI, May 18 (SMM) – Weaker-than-forecast US economic indicators released last Friday pushed US dollar index down and lent support to metals. LME lead rebounded slightly last Friday to finish at USD 1,979.5/mt, up USD 12.5/mt or 0.64%. Trading volumes slipped 2,017 to 3,441 lots and positions dropped 102 to 157,000. LME lead stocks fell 375 to 162,775 mt.
Market expectation for China’s April home sales of 70 large and medium sized cities is upbeat, favoring metals price. Monday night will see US NAHB’s May home price. In spot market, trades may be muted today with lead smelters and cargo holders quoting high and downstream producers replenishing few stocks early this week for fear of price fall.
US April manufacturing output out last Friday slipped 0.3%, the fifth drop in five months. Preliminary value of May University of Michigan Consumer Confidence Index was 88.6, the lowest since October 2014, far below expectation. Thus, sluggish US data weighed on US dollar index and supported base metals. But concerns that slow US economy will press global economy depressed commodities.
The State Council of China decided to further promote important industries including steel, nonferrous metals, building material, railway, power, chemical industry, communication and so on, helpful for easing excessive capacity in China’s nonferrous metals industry, bolstering metals.
US dollar index fell 0.11% while euro rose 0.32%. European and US stocks were mixed. LME base metals diverged with considerably drop in aluminum, lead and zinc.
LME lead will move between USD 1,965-2,000/mt. SHFE 1507 lead should fluctuate between RMB 13,300-13,370/mt and spot lead 13,550-13,700/mt.