SHANGHAI, Aug. 13 (SMM) – Chinese yuan weakened further during Asian trading hours and thus LME lead drifted lower to USD 1,680/mt after starting at USD 1,715/mt. Then US dollar started to drop. Weaker Chinese yuan slowed expectation for US Fed interest rate increase. The People’s Bank of China adopted measures to avoid excessive devaluation of the yuan. As such, LME lead gradually regained the losses and advanced to USD 1,744.5/mt, to end at USD 1,740/mt, up USD 27/mt. Trading volumes saw a rise of 1,347 to 6,091 lots and positions grew to 127,190, rising 1335. LME lead stocks fell 125 mt to 205,250 mt.
Longs for SHFE 1510 lead jumped on Wednesday evening. The contract opened at RMB 13,295/mt and closed up RMB 305/mt at RMB 13,490/mt.
LME lead is likely to move in a tight range of USD 1,730-1,760/mt on Aug. 13. SHFE 1510 lead will move between RMB 13,400-13,550/mt and RMB 13,400-13,500/mt for spot lead.