SHANGHAI, Jun. 30 (SMM) – LME lead opened at USD 1,789/mt during Asian trading hours and dipped to USD 1,758/mt due to fueling Greece debt crisis, to end up USD 5.5/mt at USD 1,786/mt after rebounding thanks to cheaper US dollar. Trading volumes were up 850 to 3,761 lots while positions dropped 2,339 to 138,264 with reducing longs. LME lead inventories fell 150 mt to 176,300 mt.
SHFE 1508 lead started at RMB 12,750/mt during Monday evening session and moved between RMB 12,710-12,870/mt, to finish at RMB 12,805/mt, down RMB 195/mt.
Despite the deposit reserve ratio and interest rate cut by the PBOC, CSI 500, IH 50 and IF 300 indexes plummeted as a large number of financiers closed positions, though clawed back some losses at the end of trading. This depressed market confidence. The China Securities Regulatory Commission (CSRC) expects to ease market panic. The Ministry of Human Resources & Social Security and the Ministry of Finance solicited advises for the Investment & Management Methods for Basic Old-Age Pension.
The European Central Bank rejected Greece’s application for EUR 6 billion emergency liquidity assistance, but agreed to leave the ceiling for ELA at EUR 89 billion until the referendum to be implemented July 5. This allowed global stocks markets to plunge.
US pending home sales were at 0.9%, falling short of the 1.2% expected. But analysis believes US Pending Home Sales Index, which tracks contract signings hit a new high since April 2006, and rose for the fifth straight month, meaning US property market is recovering. However, an increasing likelihood of Grexit may postpone interest rate hike by the Fed. When combined with appreciation of CHF against the US dollar, the US dollar index fell to 95.
With the exception of copper, all base metals prices dropped. SHFE nickel prices fell by daily limit at one point, and rebar prices also hit a record low. London gold prices rose 0.38%.
Markets expect LME lead to be in USD 1,765-1,795/mt today. SHFE 1508 lead should move between RMB 12,730-12,880/mt and RMB 13,200-13,350/mt for spot lead.