SHANGHAI, Aug. 14 (SMM) – LME lead is likely to test upside resistance at $ 1,770 per tone and move in a tight range of $ 1,710-1,760 per tonne next week, SMM lead group foresees.
More longs enter market for LME lead and meanwhile positions closed by shorts also grow, a sigh of weak strength in shorts.
SHFE 1510 lead may fall to 13,000 yuan per tonne next week as good news of Chinese yuan’s depreciation has been digested by market and as short squeeze will disappear after this month's delivery.
China’s spot lead should follow SHFE lead to drop slightly to 13,150-13, 350 yuan per tonne next week. Lead smelters will rush to sell near late Aug. and downstream purchase will increase after price falls in spot lead. Besides, VAT rebate cut supports secondary lead prices to move higher and this will also support primary lead prices. Consequently, those two supportive factors will curb the drop in spot prices.