SHANGHAI, Sept. 23 (SMM) – LME lead started at USD 1,705/mt during Asian trading hours and then moved around USD 1,700/mt. But during European and US trading hours, LME lead touched a low of USD 1,668/mt on firmer US dollar before closing down USD 21/mt at USD 1,683/mt. Trading volumes fell 11 to 4,099 lots and positions declined 617 to 121,895. LME lead stocks saw a drop of 325 mt to 165,125 mt.
SHFE 1511 lead gapped lower at RMB 13,060/mt for night trading Tuesday in response to LME lead. Then, the contract fluctuated between RMB 13,040-13,090/mt, to end at RMB 13,055/mt, down by RMB 80/mt.
US dollar grows and market players show concerns over downturn in global economy. As such, commodity prices fall across the board. Market sentiment stays anemic. LME lead should move in USD 1,655-1,685/mt during Asian trading hours. SHFE 1511 lead fell below RMB 13,150/mt and technical indicators point downside. Hence, SHFE lead is likely to test support at RMB 13,000/mt to hover between RMB 12,980-13,120/mt on Sept. 23. In China’s spot market, large producers gradually start pre-holiday stocking and mid-sized and small producers purchase on need. Spot supply shows modest tightness. Spot lead will trade at RMB 13,200-13,300/mt.