SHANGHAI, Aug. 21 (SMM) – LME lead should move in a tight range between $1,670-1,720 per tonne next week, SMM lead group reckons.
Growing longs exit market and strong resistance forms at $1,720 per tonne for LME lead.
SHFE 1510 lead is likely to test support at 13,100 yuan per tonne next week. SHFE lead outshined LME lead last week, pushing SMM/LME lead price ratio up to 7.84. The high ratio leaves downside room open for SHFE lead. Besides, sell-off pressures suffered by SHFE lead appear on Friday.
Chinese spot lead may fall slightly to 13,100-13,350 yuan per tonne next week. Cash-hungry lead smelters will show great enthusiasm in selling late Aug. Lead-acid battery makers shut down by Beijing’s parade on Sep. 3 and hence, demand will be depressed by poor operating rate at battery makers. This will not lead support to lead prices. However, shortfall in secondary lead will shift more buyers to primary lead, boding well for lead prices.