SHANGHAI, Jul. 24 (SMM) – LME lead should test support at $ 1,670-1,680 per tonne next week, SMM lead group reckons.

US GDP in Q2 is expected to grow 2.5% with Q1’s drop of 0.2%, which will drive dollar up and metal prices down.

Though net long positions are left unchanged and LME cash-to-three month contango edges down, positions of LME lead have plunged for three weeks, a sigh of capitals gradually withdrawning from market, depressing LME lead prices.

SHFE 1510 lead is expected to hover between 12,500-12,600 yuan per tonne next week.  

China spot lead should move between RMB 12,900-13,100/mt this week. Shortage in spot supply will be eased as tight liquidity will force lead smelters to ship more goods out and downstream buyers to cut purchase.

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