SHANGHAI, Aug. 26 (SMM) – On Tuesday, LME lead started at USD 1,655/mt. China’s A-shares fell below 3,000, slumping 7.63%, fueling bearishness in market. Thus, LME lead moved lower to USD 1,645.5/mt during Asian trading hours but later soared to USD 1,695/mt as the People’s Bank of China (PBOC) announced to cut the reserve requirement ratio (RRR) and lower key interest rates. The 3-month contract on the LME ended USD 13.5/mt higher at USD 1,673.5/mt. Trading volumes fell 1,048 to 5,563 lots and positions were up 1,013 to 127,289.
SHFE 1510 lead opened at RMB 13,240/mt for night trading Tuesday and advanced to RMB13,425/mt in response to the PBOC’s announcement. The contract closed at RMB 13,340/mt, up RMB 260/mt or 1.99%. Trading volumes dropped 5,124 to 3,728 lots and positions fell 30 to 17,530.
LME lead should be in a tight range of USD 1,640-1,690/mt on Aug. 26. SHFE 1510 lead is expected to hover between RMB 13,200-13,400/mt and spot lead should grow to RMB 13,250-13,400/mt.