SHANGHAI, Jul. 17 (SMM) – Data from the US were upbeat yesterday and Yellen said the Federal Reserve is on a path to raise interest rates yet this year. This allowed dollar to be stronger. LME lead responded by falling below the 40-day moving average and finally closed at USD 1,834.5/mt, losing USD 29.5/mt or 1.58%. Trading volumes dropped 2,510 to 4,344 lots and positions also saw a loss of 3,089 to 130,508. LME lead inventories fell 1,250 mt to 219,375 mt.
Market is short of major reports today. Attention should be paid to eurozone’s CPI in June, US’s initial jobless claims data of last week and housing data. The strengthening in dollar is expected to limit a rally in lead prices. Growing supply will depress spot lead prices. Spot lead quotes high in Henan but anemic demand will not support lead prices.
LME lead may be in a range of USD 1,820-1,855/mt today. SHFE 1509lead should move between RMB 13,000-13,110/mt and spot lead may drop RMB 25/mt to RMB 13,250-13,350/mt.