SHANGHAI, Jul. 8 (SMM) – During Asian trading hours, LME lead started at USD 1,766/mt. China’s A-shares extended declines and some CSI 500 index futures fell to daily downward limit. Iron ore and rebar futures also reached daily downwards limit after opening Tuesday morning session. Those factors combined to throw markets into panic. LME lead responded by diving to USD 1,703/mt, to close at USD 1,733.5/mt, down USD 35.5/mt. Trading volumes grew 1,055 to 5,197 lots while positions fell 76 to 145,872. Inventories of LME lead dropped 800 mt to 171,100 mt.
SHFE 1509 lead turned to the most active contract, to open Tuesday evening session at RMB 12,570/mt. The contract touched a low of RMB 12,200/mt and then grew slightly due to falling shorts, to close at RMB 12,530/mt, down RMB 255/mt.
LME lead should move in a range of USD 1,700-1,740/mt today. SHFE 1509 lead may hover between RMB 12,300-12,500/mt and RMB 12,950-13,050/mt for spot lead.