SHANGHAI, Dec. 8 (SMM) – LME lead is expected to stay strong at USD 1,665-1,695/mt during Asian trading hours Tuesday with support at the 40-day moving average and upbeat technical indicators.
Crude oil prices slumped and US dollar rallied to high with Fed rate hike around the corner. Both factors weigh on lead prices.
See forecast for other base metals, please click: Shanghai Base Metal Prices to Stay Weak, SMM Says
Despite overall bearishness,SHFE 1602 lead will range between RMB 12,820-13,020/mt on Dec. 8. The contract moves above all moving averages and technical indicators points upward.
Spot lead supply heads for losses in China and secondary refined lead enjoys price advantages, attracting more buyers. On the other hand,downstream buyers still purchase as needed. Thus, spot lead will trade at RMB 13,050-13,150/mt.