SHANGHAI, May 28 (SMM) – LME lead finished up USD 3.5/mt at USD 1,953/mt Wednesday night due to China’s better-than forecast economic indicators and eased Greece crisis. Trading volumes were down 1,164 to 1,957 lots and positions fell 1,240 to 14,929. Inventories for LME lead decreased 2,375 to 158,025 mt.
China’s April large industrials’ profits rose 2.6% YoY, or RMB 12.03 billion including RMB 11.61 billion of investment returns. But industrials’ main business incomes failed to turn better. Thus, worries about China’s demand remained. China government decided to add support to housing market to stabilize economy growth at a recent meeting on Q1 economic conditions.
Greece government expressed that Greece and its creditors are drafting agreements, meaning a start of technical negotiation, pushing US stocks, euro and crude oil prices up.
US dollar dropped following a high due to growing euro. LME base metals were mixed. LME lead and zinc rose but other metals fell.
LME lead should test the 60-day moving average today to move between USD 1,930-1,955/mt. SHFE 1507 lead is expected to fluctuate between RMB 13,280-13,380/mt and spot lead RMB 13,650-13,750/mt.