SHANGHAI, May 22 (SMM) – LME lead opened at USD 1,932/mt during Asian trading hours. During European and US trading hours, LME lead hit a high of USD 1,983.5/mt thanks to upbeat eurozone indicators, growing crude oil price and hope for China’s pro-growth measures, to end up USD 42.5/mt at USD 1,977.5/mt. Trading volumes rose 729 to 5,192 lots whilst positions cut 522 to 148,757. Inventories for LME lead fell 1,025 to 161,500 mt.
SHFE 1507 lead started Thursday evening trading session at RMB 13,280/mt and reached RMB 13,390/mt, to finish at RMB 13,350/mt, climbing RMB 150/mt.
Data from China, US and Europe were disappointing yesterday. US indicators all fell short of estimate, including March home sales, Philadelphia and Kansas Fed manufacturing index as well as initial jobless claims,which increased 10,000 last week, pressing US dollar. But US stocks remained strong.
Eurozone data were mixed with preliminary PMI in May hitting a 13-month high of 52.3. But service and composite PMIs were poor, indicating slow economy recovery in May. But investors were not pessimistic due to QE program.
According to the Xinhua News Agency, US Memorial Day on May 25 indicated a peak of car driving, boosting demand for oil and sending international oil price up over 3% last night.
HSBC’s China manufacturing PMI for May issued yesterday morning was 49.1, a 2-month high, but below forecast, raising hope for fresh stimulus measures. National Development & Reform Commission approved RMB 458.77 billion investment in three days.
Major stocks rose across the board. LME base metals split.
LME lead will fluctuate between USD 1,970-2,010/mt today. SHFE 1507 lead should move between RMB 13,300-13,500/mt and spot lead RMB 13,650-13,750/mt.