SHANGHAI, May 27(SMM) – Growing US dollar and falling European and US stocks weighed LME base metals. But LME lead refused to drop. LME lead opened at USD 1,952/mt Tuesday night and then touched USD 1,972/mt. However, LME lead dipped to USD 1,925/mt and later rebounded, to end up USD 4.5/mt at USD 1949.5/mt. Trading volumes dropped 1,053 to 3,121 lots while positions rose 397 to 150,531. LME inventories fell 1,075 to 160,400 mt.
LME lead should test the 60-day moving average. China’s spot lead should not drop much due to tight supply, as even though Guangdong goods will arrive to Shanghai continually, they will not ease whole tight supply in China in a short time.
Upbeat US data sent US dollar up and commodity prices down. US April durable goods (excluding aircraft) rose 1% MoM, better than estimate of 0.3%. Total annualized April home sales grew 517,000 and March home prices kept climbing with that growing over 5% MoM in 20 big cities, indicating an ongoing recover in housing market. US Conference Board CCI in May was 95.4, higher than expected 95, sending US stocks up 0.94%.
Concerns over Greece crisis grew with only 10 days left for it to pay off debts, pushing US and European stocks down.
Zhang Yujun, the Assistant of Chairman of CSRC, reported that cross-marking investing between Shenzhen and Hong Kong will be realized during H2. Zhuhai Zhongfu Industrial Company defaulted, the third one this year.
Crude oil, gold and commodity prices fell due to strong US dollar. LME lead and zinc finished up while other metals ended down.
LME lead should move between USD 1,925-1,950/mt. SHFE 1507 lead will hover between RMB 13,200-13,300/mt and spot lead RMB 13,550-13,700/mt.