SHANGHAI, Sept. 1 (SMM) – SHFE 1510 lead started Monday evening session at RMB 13,330/mt and then lurched down to RMB 13,200/mt. Later, the contract regained earlier losses with exit of shorts and ended at RMB 13,315/mt, down by RMB 30/mt.
China’s Caixin manufacturing PMI for August should be closed eyed on Tuesday. Markets expect the figure to be downbeat as smelters around Beijing shut down on the parade. But this may boost expectation for more stimulus measures. LME lead will remain range-bound between USD 1,710-1,750/mt Tuesday. SHFE 1510 lead meets strong resistance at RMB 13,350/mt and thus should range between RMB 13,200-13,380/mt. In China’s spot market, downstream consumption may build some stocks early Sept. and before the Sept. 3-5 holiday of China’s parade in Beijing to celebrate the World War II victory. As such, spot lead will trade between RMB 13,300-13,450/mt.