SHANGHAI, Jan. 4 (SMM) – SHFE market was closed last Friday for Chinese New Year holiday 2016.
China’s official manufacturing PMI came in at 49.7 in December, slightly above November’s 49.6 but missing expected 49.8. Caixin China’s manufacturing PMI issued today missed forecast and previous level. China’s economy still faces downside pressure, weighing on base metals.
SHFE 1602 lead opened at RMB 13,130/mt during Monday trading session and conce climbed to RMB 13,335/mt due to position closing by shorts. But the contract later sank to RMB 13,080/mt responding to declines in other metals and hovered between RMB 13,120-13,210/mt owing to exit of shorts, to end at RMB 13,145/mt. Trading volumes totaled 9,506 lots and positions reduced 444 to 16,534.
SHFE 1602 lead will test support at the 5 and 10-day moving averages this evening with poor economic figures from China and weakness of other metals.