SHANGHAI, Oct. 26 (SMM) – LME lead opened last Friday at USD 1,759/mt and moved around USD 1,765/mt during Asian trading hours. LME lead once drifted higher to USD 1,794/mt in response to news of China’s interest rate and RRR cut, to end at USD 1,759.5/mt. Trading volumes fell 616 to 3,255 lots but positions grew 881 to 125,219.

SHFE 1512 lead started at RMB 13,280/mt last Friday night and dived to RMB 13,175/mt due to firmer dollar. Later, the contract rebounded thanks to China’s interest rate and RRR cut and closed the session at RMB 13,255/mt, up RMB 20/mt or 0.15%. Trading volumes dropped 5,252 to 1,806 lots and positions declined 148 to 14,044. 

Though stronger dollar poses pressures to base metals, China’s interest rate and RRR cut and the convening of the 5th Plenary Session of the 18th Central Committee of the CPC on Monday will bolster market. LME lead should move in USD 1,750-1,770/mt during Asian trading hours. SHFE 1512 lead will fluctuate between RMB 13,200-13,320/mt on October 26. In China, some lead smelters cut shipment to market but demand stays weak. Spot lead will move in RMB 13,300-13,450/mt.