SHANGHAI, May 21 (SMM) – LME lead posted a modest decline Wednesday night, to open at USD 1,940.5/mt. Then LME lead dipped to USD 1,915/mt due to growing US dollar and later rebounded to end at USD 1,935/mt, down USD 10/mt. Total trading volumes dropped 1,009 to 4,463 lots and positions fell 3,754 to 149,279. LME lead inventories slipped 250 to 162,525 mt.
SHFE 1507 lead started at RMB 13,165/mt Wednesday evening and fluctuated around RMB 13,130/mt, to finish down RMB 70/mt at RMB 13,905/mt.
The minutes of US Fed’s April meeting focused market attention yesterday. But the Fed’s meeting minutes failed to tell when to raise interest rate, in line with estimate. Lots of Fed officials held that interest rate hike in June was impossible, depressing US dollar and favoring gold prices.
The Bank of England announced that interest rate remained unchanged, indicating an optimistic sentiment, boding well for UK stocks.
In euro zone, German April PPI fell 1.5% YoY, but rose 0.1% MoM, both falling short of market estimate, weighing the euro down.
US stocks rose for three days with growth slowing. Global stocks split. LME base metals mostly slipped with an exception of tin and nickel.
LME led will move at USD 1,920-1,950/mt today. SHFE 1507 lead should hover between RMB 13,100-13,250/mt and spot lead RMB 13,550-13,650/mt.