SMM Lead Market Morning Review (2015-6-16)

SHANGHAI, Jun. 16 (SMM) – LME lead opened at USD 1,856.5/mt during Asian trading hours and edged down to USD 1,838/mt. LME lead touched a low of USD 1,813.5/mt due to weak US data during European and US trading hours, to close at USD 1,815.5/mt, down USD 47/mt. Trading volumes rose 250 to 5,732 lots while positions fell 374 to 144,316. LME inventories cut 2,575 to 185,225 mt.

Greece failed to strike a deal with its creditors, thus keeping debt fears high.

Economic indicators from US were poor. Though NAHB housing market index outperformed estimate, New York Fed's manufacturing index and industrial output were disappointing. June’s New York Fed's manufacturing index hit a 2-year low of -1.98, caused by slipping new order index. Industrial output for May dropped for straight six months. Base metals were hence weighed down.

US dollar index slipped 0.09% while euro was up 0.11%. Major global stocks and LME base metals all declined.

LME lead may be in a range of USD 1,790-1,830/mt today. SHFE 1508 lead should hover between RMB 13,650-13,850/mt and RMB 13,300-13,450/mt for spot lead.