SHANGHAI, Nov. 11 (SMM) – LME lead started at USD 1,653.5/mt overnight and then gradually fell back due to bearishness, hurt by China’s weak PPI and CPI data, to end at USD 1,636/mt, down by USD 13/mt or 0.79%. Trading volumes were up 2,149 to 4,894 lots and positions increased 998 to 123,738.
SHFE 1601 lead gapped lower at RMB 12,735/mt for night trading Tuesday and once dived to RMB 12,570/mt with shorts gathering strength. The contract posted a modest rally before ending at RMB 12,690/mt with a loss of RMB115/mt or 0.9%.
China’s weak PPI and CPI data still point towards rising deflationary pressure. And investors anxiously await another batch of Chinese data, including wholesale data for October. LME lead will move in USD 1,620-1,645/mt during Asian trading hours. SHFE 1601 lead moves below the 5-day moving average and should range between RMB 12,600-12,750/mt on Nov. 11 with poor technical figures. China’s spot market stays quiet and spot lead will fall to RMB 13,000-13,100/mt.