SHANGHAI, Jun. 26 (SMM) - LME lead should be in a range of $1,770-1,830 per tonne next week, Shanghai Metals Market foresees.
Strong resistance emerges at $ 1,800 per tonne for LME lead with longs reducing. LME cash-to-three month contango remains, depressing LME lead price. But active lead concentrate importation on high SMM/LME lead price ratio should lend some support to prices.
SHFE 1508 lead may move between 12,900-13,150 yuan per tonne next week. Spot premiums dropped to 200 yuan per tonne from 600 yuan per tonne June 15-19 in Shanghai, which means SHFE lead has almost lost its rising motive power. Also, investors buy LME lead and sell SHFE futures. Thus, growth in SHFE lead prices will be limited by those combined factors.
Trades for China’s spot lead are expected to pick up late next week and traded price should be between 13,200-13,350 yuan per tonne.
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