SHANGHAI, Sept. 24 (SMM) – LME lead opened at USD 1,670/mt overnight and then dropped to USD 1,665/mt from USD 1,680/mt due to China’s poor manufacturing data. But during European trading hours, LME lead rallied to USD 1,705.5/mt and then fell back again in response to crude oil prices, to close at USD 1,688/mt, up USD 5/mt. Trading volumes grew 123to 4,222 lots and positions grew 395 to 122,290. LME lead stocks slipped 375 mt to 164,750 mt.
China’s Caixin manufacturing PMI for September recorded a 6.5-year low, triggering concerns over China’s deman, and crude oil prices tumbled, weighing down base metal prices. Gold prices increased with investors seeking for safety. ECB's Draghi says too early to decide on further stimulus, slowing the drop in euro and sending down US dollar modestly. But this fails to support base metal prices.
LME lead is likely to move in USD 1,670-1,700/mt during Asian trading hours. SHFE 1511 lead will range between RMB 13,120-13,230/mt on Sept. 24. In China’s spot market, demand for refined lead increases due to operation halt in Shandong. And large producers will build stocks before holiday, tightening spot supply. Spot lead is expected to hover between RMB 13,250-13,400/mt.