SHANGHAI, Aug. 6 (SMM) – LME base metals were depressed by rising hope for US Fed interest rate hike and China’s weak demand. LME lead retreated half of early day’s gains and finally closed down USD 21/mt or 1.21% at USD 1,715/mt. Positions slipped 1,045 to 128,176 and trading volumes decreased 674 to 3,228 lots. LME lead stocks fell 1,375 mt to 215,100 mt.
Market sentiment is affected by the Bank of England’s interest rate resolution, July’s year-on-year planned layoffs at US companies and initial jobless claims early last week. Lead prices are thus expected to be weighed on. Lead smelters still rush to import lead ores and are willing to sell lead. But demand fails to pick up, boding ill for lead prices. Spot prices may drop slightly in response to weakening SHFE lead prices.
LME lead will still move in a narrow range of USD 1710-1730/mt on Thursday. SHFE 1510 lead is expected to narrowly range between RMB 12,800-12,890/mt and China spot lead should fall slightly to RMB 13,100-13,250/mt.