40% of Market Players Optimistic over Lead Prices, SMM Surveys

SHANGHAI, Oct. 12 (SMM) – A total of 40% industrial insiders are bullish towards lead prices this week, SMM survey reveals.

The optimistic market players see LME lead to stabilize at $ 1,800 per tonne this week and SHFE 1512 lead to touch 13,750 yuan per tonne.

On the macro side, US Fed’s concerns over overseas economy and financial market slow the pace of interest rate hike. Besides, markets expect US September’s annualized PPI and monthly core retail sales to be discouraging. As such, US dollar index is likely to go down. This, combined with rising crude oil prices, will lend support to lead prices.

Additionally, lead prices should continue to seek support from rising zinc prices due to Glencore’s cut news. Technically, LME lead broke out above all the moving averages last Friday and remains at highs. In terms of demand, cold weather in north China quickens replacement of ignition batteries, pushing operating rate up at automobile battery makers. In response, this helps to grow demand for refined lead. 

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