SHANGHAI, Aug. 25 (SMM) – LME lead started at USD 1,699/mt overnight and once touched a low of USD 1,618.5/mt as slipping commodities prices and stocks fueled market panic. Later, the 3-month contract on the LME rallied to regain some losses and ended at USD 1,660/mt, down USD 51/mt or 2.98%. Trading volumes grew 2,504 to 6,611 lots and positions were up 528 to 126,276.
SHFE 1510 lead opened Monday evening session at RMB 12,980/mt and then expectation for Chinese yuan depreciation lured investors to sell LME copper and buy SHFE copper. And hence, SHFE lead soared to RMB 13,165/mt as longs entered market and closed the session at RMB 13,120/mt, down by RMB 10/mt. Trading volumes fell 2,492 to 4,456 lots while positions increased 154 to 17,896.
Markets expect LME lead to range between USD 1,630-1,670/mt Aug. 25. SHFE 1510 lead should fluctuate between RMB 12,950-13,150/mt and RMB 13,200-13,300/mt for spot lead.