SHANGHAI, Sept. 8 (SMM) – Major reports were absent overnight. Chinese stocks grew initially but later fell back. LME lead started at USD 1,671/mt during Asian trading hours and then narrowly moved between USD 1,670-1,680/mt. LME lead ranged between USD 1,660-1,680/mt during European trading hours and finally closed at up USD 11/mt at USD 1,675/mt. Trading volumes decreased 1,327 to 2,210 lots but positions jumped 3,499 to 132,859. LME lead stocks slid 2,125 mt to 174,450 mt.
SHFE 1511 lead immediately dropped to RMB 13,250/mt after opening Monday evening session at RMB 13,315/mt. Then the contract grew to RMB13,280-13,300/mt, contributed by rising longs and finally ended at RMB 13,320/mt, losing RMB 20/mt.
Trading volumes fall sharply in Chinese stock market and risk of shorts exit should be warned. LME lead will move at lows between USD 1,655-1,685/mt on Sept. 9. SHFE 1511 lead may move at highs between RMB 13,250-13,380/mt with longs entering market. In Chinese spot market, purchase is expected to increase Tuesday. Thus, spot lead is likely hover between RMB 13,350-13,450/mt.