SHANGHAI, Nov. 2 (SMM) – LME lead started last Friday trading session at USD 1,711/mt and moved around USD 1,710/mt during Asian trading hours. LME lead dived to USD 1,690/mt owing to poor reading of economic data from China but later rallied slightly due to slight decline in dollar, to end at USD 1,699/mt. Trading volumes grew 1,128 to 4,373 lots and positions were up 1,776 to 124,092.
US Michigan consumer sentiment index for October missed forecast and inflation dropped to a historical low. China’s official manufacturing PMI remained low in October and nonmanufacturing PMI slipped to a new low this year, triggering wary sentiment in market. However, US dollar also fell slightly on the back of disappointing US data.
SHFE 1512 lead gapped lower at RMB 13,175/mt last Friday night and moved around RMB 13,150/mt with closing price down RMB 125/mt or 0.94% at RMB 13,145/mt. Trading volumes declined 4,608 to 2,242 lots but positions increased 808.
Markets expect US October’s Markit manufacturing PMI to be flat with September but ISM manufacturing index to miss forecast. As auch, market sentiment should keep wary. LME lead will move in USD 1,690-1,710/mt during Asian trading hours. SHFE 1512 lead should range between RMB 13,100-13,250/mt on November 2. Spot supply will grow in China and downstream consumption will stay slack. Spot lead should fall to RMB 13,200-13,300/mt.