LME Lead to See Small Upside Room Next Week, SMM says

SHANGHAI, Dec. 11 (SMM) – Any big gains in LME lead will be curbed by firmer dollar next week and LME lead should trade at highs $ 1,680-1,735 yuan per tonne with upbeat technical indicators.

On the SHFE market, February-delivery lead is expected to trade at 12,800-13,230 yuan per tonne next week. SHFE lead finds support at moving averages but production cut news will be gradually digested by market after the Shanghai Cooperation Organization (SCO) summit December 14-15 in Henan.

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Spot lead should grow slightly to 13,100-13,250 yuan per tonne next week. Tightened supply in Shanghai and Henan will not be eased in a short time. Also, some listed lead-acid battery makers ramp production for year’s target. And parts of battery makers will reportedly increase purchase for lead ahead of the upcoming consumption tax, effective January 1, 2016. But any large rise in spot lead prices will be unlikely due to limited growth in SHFE lead. 

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