SHANGHAI, Sept. 21 (SMM) – LME lead started at USD 1,719/mt last Friday and moved in USD 1,710-1,730/mt during Asian trading hours. LME lead lurched down to USD 1,675.5/mt during European trading hours with closing price at USD 1,683.5/mt, down USD 33.5/mt. Trading volumes grew 989 to 4,338 lots while positions declined 374 to 123,123. LME lead stocks dropped 550 mt to 164,975 mt.
Market lacked major reports last Friday. Investors entered market for bargain hunting after news of US unchanged interest rate already digested by market. US dollar index jumped, weighing on base metals.
Last Friday evening, SHFE 1511 lead once moved lower to RMB 13,185/mt after opening at RMB 13,245/mt, to close down RMB 95/mt at RMB 13,230/mt.
US dollar returns to gains, fueling bearishness. Technical indicators point upside. As such, LME lead should move at lows in USD 1,660-1,690/mt during Asian trading hours. SHFE 1511 lead test support at the 30-day moving average to move in RMB 13,180-13,280/mt on Sept. 21. In China’s spot market, lead smelters will rush to sell ahead of China’s upcoming Mid-autumn Festival and National Day holiday. Besides, traders will be active in moving hedged goods out due to high premiums, increasing market supply. Downstream large producers may replenish stocks at lows while mid-sized and small producers should wait for further price falls. Hence, spot lead will traded at RMB 13,300-13,400/mt.