SMM Lead Market Morning Review (2015-10-23)

SHANGHAI, Oct. 23 (SMM) – LME lead once shot up to USD 1,782/mt due to improved market sentiment after starting at USD 1,740/mt overnight. Later, LME lead slipped to USD 1,760/mt owing to stronger dollar and ended up USD 21/mt or 1.21% at USD 1,759.5/mt.

In overnight news, US housing data in September were upbeat, supporting stock market. Besides, markets expected more stimulus measures from China, improving market sentiment.  

SHFE 1512 lead started at RMB 13,290/mt on Thursday night and drifted higher to RMB 13,385/mt thanks to improving optimistic sentiment. Later, the contract met resistance at the 5 and 20-day moving average and fell back, to close at RMB 13,230/mt, up RMB 110/mt. Trading volumes dropped 9,520 to 2,352 lots and positions fell 78 to 14,252.

The ECB kept interest rate unchanged, in line with forecast but the ECB President Mario Draghi indicated the likelihood of further interest rate cut.

LME lead should move in USD 1,740-1,765/mt during Asian trading hours. SHFE 1512 lead will range between RMB 13,200-13,350/mt on October 23. Both demand and supply stays anemic in China and transactions will not pick up before weekend. Thus spot lead will trade at RMB 13,300-13,450/mt.