SHANGHAI, May 20 (SMM) – LME lead started at USD 1,969.5/mt during Asian trading hours and then moved between USD 1,970-1,975/mt. But LME lead fell during European and US trading hours as European Central Bank announced to speed up implementing QE program and as upbeat US indicators pushed dollar up, to touch a low of USD 1,936/mt . LME lead finally ended down USD 19/mt at USD 1,945/mt. Total trading volumes were up 1,733 to 5,472 lots. Total positions were down 1,774 to 153,033. LME lead inventories remained unchanged.
SHFE 1507 lead opened lower at RMB 13,240/mt Tuesday night and then dipped to RMB 13,155/mt. Later the contract rebounded as support at the 20-day moving average emerged, to finish down RMB 135/mt at RMB 13,200/mt.
Coeure, a European Central Bank officer, announced that the bank will purchase assets in advance and accelerate to implement QE program in May-June due to the low capital liquidity in July-August, weighing the euro down 1.46% and pushing US dollar index up 1.2% to over 95. In response, global commodity prices all fell.
German ZEW economic sentiment indicator in May and eurozone trade balance were downbeat. Meanwhile, UK April CPI hit a fresh low since 1960, driving GBP: USD down near 1%. Upbeat US housing data raised hope for the Fed’s interest rate hike in 2015, bolstering US dollar. US April housing starts hit a 7-year high of 1,135,000 and April building permits reached 1,143,000, supporting US dollar again.
Global stocks mostly increased while US stocks hit a fresh high. Except tin, all LME base metals fell with nickel down 5.54%.
LME lead is expected to move at USD 1,910-1,950/mt today. SHFE 1507 lead should fluctuate between RMB 13,080-13,280/mt and spot lead 13,550-13,650/mt.