SHANGHAI, Aug. 31 (SMM) – Last Friday, commodity prices posted rises due to a two-day rally in Chinese stock market. LME lead started at USD 1,689/mt and then moved around USD 1,687/mt during Asian trading hours. Market sentiment was depressed by China’s downbeat profit numbers of large industrials for July. LME lead responded by diving to USD 1,671/mt and then advanced to USD 1,737.5/mt before ending at USD 1,731/mt, up by USD 53.5/mt. Trading volumes increased 1,305 to 5,220 lots while positions declined 636 to 126,950. LME lead inventories decreased 1,725 mt to 187,400 mt.
SHFE 1510 lead opened at RMB 13,520/mt for night trading last Friday and once dipped to RMB 13,330/mt, to close at RMB 13,445/mt, up RMB 5/mt.
LME lead market shut down on Monday. China called on more measures to rescue Chinese stocks last weekend and this may push A-shares up today. Hence, SHFE 1510 lead should grow modestly to RMB 13,400-13,550/mt on Aug. 31. China’s spot lead will range between RMB 13,350-13,500/mt. Downstream consumption should stay anemic on the last trading day of this month.