SMM Lead Market Morning Review (2015-11-16)

SHANGHAI, Nov. 16 (SMM) – LME lead opened at USD 1,614/mt last Friday and ranged around USD 1,615/mt during Asian trading hours. Then LME lead traced crude oil prices up to USD 1,621/mt but fell back later due to firm dollar, helped by stronger-than-expected US University of Michigan CCI for November, to end at USD 1,608/mt. Trading volumes fell 2,125 to 2,096 lots while positions were up 1,690 to 129,669.

SHFE 1601 lead started at RMB 12,600/mt last Friday night and lurched up before closing at a high of RMB 12,690/mt, up RMB 60/mt or 0.48%. Trading volumes dropped 5,552 to 1,654 lots and positions increased 100 to 11,860.

US University of Michigan CCI for November beat forecast and US dollar thus moves at highs. Pairs suffered terrorism attack last weekend, triggering risk aversion in market. This weighs on base metals. LME lead will fluctuate between USD 1,600-1,620/mt during Asian trading hours. SHFE 1511 lead is delivered today and SHFE 1601 lead should range between RMB 12,550-12,700/mt on November 16. In China’s spot market, lead smelters are unwilling to move goods out and downstream demand stays sluggish. Thus, spot lead should trade at RMB 12,950-13,100/mt.