SHANGHAI, Sept. 9 (SMM) – LME lead started at USD 1,668/mt during Asian trading hours and then narrowly moved around USD 1,670/mt. LME lead reached USD 1,701.5/mt at one point, contributed by a growth in Chinese stock market but later retreated modestly with resistance forming at the 20-day moving average. LME lead closed up USD 14/mt at USD 1,689/mt. Trading volumes were up 1,283 to 3,493 lots while positions declined 1,979 to 130,880. LME lead stocks saw a decline of 2,200 mt to 172,250 mt.
SHFE 1511 copper opened at RMB 13,170/mt for night trading Tuesday and then broke above RMB 13,300/mt, to close at RMB 13,330/mt, up by RMB 135/mt.
Supportive factors, including the September-October peak demand season and China’s pro-growth measures, improved market sentiment. Moreover, LME lead stocks continue to fall for recent 2 months and LME lead prices has slid to a 6-year low. As such, LME lead may rise to test USD 1,700/mt and move in USD 1,680-1,710/mt on Sept. 9. SHFE 1511 lead will hover between RMB 13,280-13,420/mt.
In China’s spot market, lead smelters are eager to sell and traders are active in purchase but move limited good out. Downstream buyers stay the sidelines. Thus, spot lead should trade between RMB 13,350-13,500/mt.