SHANGHAI, Aug. 28 (SMM) – LME lead started at USD 1,645/mt on Thursday and once drifted lower to USD 1,643/mt during Asian trading hours due to slumps in Chinese stock market. But later, China’s A-shares rallied and gained 5.34%. This, combined with growing crude oil prices and US stocks, improved market sentiment. As such, LME lead increased before ending at USD 1,677.5/mt, up by USD 32.5/mt. Trading volumes were up 106 to 3,915 lots with positions up 580 to 127,586.
SHFE 1510 lead gapped higher at RMB 13,360/mt for night trading Thursday and then advanced to RMB 13,520/mt thanks to the growth in crude oil prices, to close at RMB 13,445/mt, gaining RMB 190/mt or 1.43%.
SHFE 1510 lead may grow to RMB 13,300-13,500/mt on Aug. 28 as the contract find solid support at many moving averages and as technical indicators point upside. In China’s spot market, downstream consumption stays slack late Aug. But supply shortage and the growth in SHFE lead prices will support spot prices. As such, spot lead should increase RMB 50/mt to RMB 13,300-13,450/mt.