SHANGHAI, Jul. 31 (SMM) – LME lead extended losses on Thursday evening. LME lead started Asian trading hours at USD 1,725/mt and dropped with base metals all depressed. During European and US trading hours, US GDP growth for Q2 came in at 2.3%, blow forecast but better than previous value. IMF announced to consider no further bailout for Greece and stronger dollar further depressed base metals. LME lead responded by dipping to USD 1,701/mt and finally ended at USD 1,715/mt, down by USD 5.5/mt. Trading volumes were up 341 to 3,121 lots while positions fell 1,324 to 130,841. LME lead stocks slipped 475 mt to 220,100/mt.
SHFE 1510 lead still outperformed LME lead and thus SMM/LME lead price ratio reached 7.6. SHFE lead dived to RMB 12,930/mt after opening at RMB 13,070/mt for night trading Thursday, to close at RMB 13,010/mt, decreasing RMB 45/mt.
LME lead will remain range-bound between USD 1,700-1,730/mt on July 31. SHFE 1510 lead should range between RMB 12,930-13,080/mt and RMB 13,200-13,300/mt for spot lead.