SHFE Lead Ups 2.49% (Nov. 25, 2015)

SHANGHAI, Nov. 25 (SMM) – SHFE 1601 lead gapped higher at RMB 12,540/mt during Tuesday night session responding to early day’s gains and Turkey-Russia tensions. Then, the contract ranged between RMB 12,360-12,660/mt before closing RMB 12,560/mt, up RMB 300/mt or 2.45%.

During Wednesday trading session, the most actively-traded contract hovered between RMB 12,450-12,530/mt and closed at RMB 12,565/mt, up by RMB 305/mt or 2.49%. Trading volumes saw a decline of 4,078 to 15,294 lots and positions narrowed 602 to 14,244.

SHFE 1601 lead should continue to test support from the 20-day moving average this evening. Falling dollar will lend support to SHFE lead prices. Position opening by shorts accounts for a large number, reflecting bearish attitude towards lead future prices.