SHANGHAI, Jun. 17 (SMM) – LME lead opened at USD 1,818.5/mt during Asian trading hours and moved down to USD 1,810-1,830/mt. The metal ended at a low of USD 1,798/mt, down USD 17.5/mt during European and US trading hours because of poor US housing data and growing Greece debt crisis. Trading volumes dropped 466 to 5,226 lots and positions fell 4,913 to 139,403. Inventories for LME lead dropped 5,450 to 179,775 mt.
SHFE 1508 lead started at RMB 12,720/mt and hovered between RMB 12,720-12,780/mt Tuesday evening, to end at RMB 12,730/mt with SMM/LME lead price ratio near 7.1.
Greece debt crisis continued to overshadow market. EU officials talked whether Greece can still stay inside EU after its default, driving Greece stocks down 3.5%.
Data from US were mixed. May’s housing starts slipped after hitting a 7-year high in April, short of market estimate. But building permits reached a fresh high since 2007 in May, indicating a strong potential strength in US housing market. US stocks increased across the board yesterday with three major stocks up near 0.5%.
UK May’s year-on-year CPI grew for the first time in four months, on par with expectation and ending April’s temporary deflation. Germany ZEW economic sentiment indicator in June fell short of forecast.
Major stocks diverged in global equity markets. China’s A-share tumbled below 500 yesterday. LME base metals all slipped.
LME lead should move narrowly between USD 1,790-1,830/mt today. SHFE 1508 lead is expected to hover between RMB 12,680-12,830/mt and spot lead RMB 13,300-13,400/mt.