SHANGHAI, Aug. 12 (SMM) – LME lead dived to USD 1,709.5/mt as devaluation of Chinese yuan pushed US dollar up, before starting Tuesday evening session at USD 1,754/mt. Finally, LME lead closed at USD 1,713/mt, down by USD 43.5/mt or 2.48%. Trading volumes grew 1,259 to 4,744 lots while positions declined 844 to 125,855. LME lead stocks dropped 2,525 mt to 205,375 mt.
SHFE 1510 lead outperformed LME lead during Tuesday evening session and this further expanded SMM/LME lead price ratio. SHFE lead started at RMB 13,180/mt and finished RMB 55/mt lower at RMB 13,110/mt with the low-end price at RMB 13,100/mt.
Market players expect LME lead to be in a tight range of USD 1,690-1,725/mt Aug. 12. SHFE 1510 lead will be negatively affected by devalue of Chinese yuan to fall to RMB 13,030-13,180/mt. Chinese spot lead may hover between RMB 13,200-13,300/mt.