SHANGHAI, Aug. 27 (SMM) – LME lead started at USD 1,670/mt on Wednesday. The PBOC’s announcement of RRR and interest rate cut failed to stimulus makert sentiment. LME lead fluctuated following China’s volatile A-shares. US durable goods orders for July beat forecast and US dollar was thus supported, boding ill for base metals. LME 3-month lead once dived to USD 1,628/mt before ending at USD 1,645/mt, down USD 28.5/mt. Trading volumes dropped 1,754 to 3,809 lots and positions decreased 283 to 127,006.
SHFE 1510 lead gapped lower at RMB 13,145/mt for night trading Wednesday and then ranged between RMB 13,115-13,275/mt, to close at RMB 13,190/mt, losing RMB 110/mt. Trading volumes declined 4,416 to 2,810 lots and positions also dropped 84 to 17,234.
SHFE 1510 lead should range between RMB 13,100-13,250/mt on Aug. 27. In China’s spot lead market, orders from downstream lead-acid battery makers tend to decrease, but supply shortfalls will support lead prices. Thus, spot lead will quote RMB 13,200-13,350/mt.