SHANGHAI, Jul. 16 (SMM) – The Bank of Canada surprisingly cut its key interest rate and Yellen expressed an interest rate hike this year, sending dollar up 0.54%. Base metals were thus depressed. LME lead rolled back earlier gains aftering touching a high of USD 1,881/mt, its highest last seen on June 11 during Asian trading hours. LME lead finally closed at USD 1,864/mt, up USD 16.5/mt or 0.89%.
Market lacks solid economic news today. US dollar is expected to be stronger, weighing on lead prices. LME lead outperformed SHFE lead. More spot lead arrived to Shanghai, depressing lead prices again. Some news stated that battery producers intend to step battery prices up. But poor consumption may discourage the price hike,which will not lend support to lead prices. Thus, spot lead prices should drop slightly today.
LME lead should fluctuate between USD 1,845-1,880/mt today. SHFE 1509 lead is expected to move between RMB 13,060-13,150/mt. Chinese spot lead may fall to RMB 13,250-13,400/mt.