SHANGHAI, Nov. 18 (SMM) – LME lead opened at USD 1,596/mt and drifted lower to USD 1,580/mt during Asian trading hours. However, LME lead rebounded to USD 1,611/mt during European and US trading hours thanks to entering of longs. Later, LME lead fell back again due to resistance at the 5-day moving average and strong dollar, to close at USD 1,586.5/mt, down by USD 8.5/mt or 0.53%. Trading volumes were up 1,922 to 5,330 lots while positions fell 653 to 130,581.
SHFE 1601 lead started Tuesday night session at RMB 12,330/mt and then traced LME lead up to RMB 12,385/mt. The contract headed for losses before closing at RMB 12,285/mt, slipping RMB 15/mt or 0.12%. Trading volumes reduced 9,408 to 3,356 lots but positions grew 290 to 13,246.
US CPI for October returns to gains following two months’ losses, boosting expectation for US rate hike this year. US dollar thus goes up, curbing base metals prices. LME lead will move in USD 1,570-1,600/mt during Asian trading hours. SHFE 1601 lead will range between RMB 12,210-12,380/mt on November 18. In China, some lead smelters hold back sales and downstream buyers purchase as needed. Spot lead will trade flat with yesterday at RMB 12,750-12,850/mt.