SHANGHAI, Sept. 7 (SMM) – Last Friday, LME lead drifted lower to USD 1,700/mt after starting Asian trading hours at USD 1,718/mt. During European and US trading hours, LME lead broke below USD 1,700/mt and once dived to USD 1,661.5/mt. This was because US non-farm payrolls missed forecast but unemployment rate recorded a new low since April 2008, boosting outlook for Fed rate hike. LME lead finally closed USD 44/mt lower at USD 1,664/mt. Trading volumes were up 278 to 3,537 lots and positions increased 77 to 129,360. LME lead stocks decreased 2,925 mt to 176,575 mt.
Chinese financial market was closed last Friday on Beijing’s parade.
Chinese stock market reopens on Monday and market sentiment turns cautious. LME cash-to-three month contango tumbles. As such, LME lead will move between USD 1,655-1,685/mt on Sept. 7. SHFE 1511 lead should follow LME lead to fall to RMB 13,200-13,350/mt. China’s spot lead may drop to RMB 13,300-13,400/mt.