SMM Lead Market Morning Review (2015-10-9)

SHANGHAI, Oct. 9 (SMM) – LME lead opened Thursday trading session at USD 1,675/mt and once touched support at USD 1,657.5/mt. Nonetheless, LME lead regained some losses later on the back of softer dollar and rising crude oil prices. Trading volumes dropped 1,233 to 3,639 lots and positions fell 481 to 125,318.

SHFE 1512 lead gapped lower at RMB 13,300/mt for night trading Thursday and then moved narrowly in RMB 13,280-13,325/mt. Finally, the contract closed down RMB 70/mt or 0.52%. Trading volumes decreased 1,876 to 498 lots with positions down 48 to 11,934.

US Fed delayed to raise interest rate due to worries about overseas economy and financial market, boding ill for dollar. Meanwhile, the growth in crude oil prices improved market sentiment. But LME lead meets resistance at the 20-day moving average and thus should fluctuate between USD 1,660-1,680/mt during Asian trading hours. SHFE 1512 lead will move between RMB 13,250-13,350/mt on Oct. 9. In China’s spot market, downstream buyers show little interest with stocks built in holiday. Therefore, spot lead is likely to fall RMB 25/mt to RMB 13,400-13,500/mt.