SHANGHAI, Nov. 21 (SMM) – On Monday, SHFE 1701 lead started at RMB 17,860/mt and then rallied to above RMB 18,000/mt before fluctuating at around RMB 18,050/mt. During the afternoon trading, SHFE 1701 lead climbed to RMB 18,300/mt, up to as high as RMB 18,340/mt. The contract gave up some previous gains and finally ended at RMB 18,230/mt, up RMB 440/mt or 2.17%. Trading volumes increased 24,925 to 60,068 lots and positions rose 2,548 to 31,740. Chinese yuan kept falling on Monday, support commodities in China’s market and SHFE 1701 lead increased again.
SHFE 1701 lead is expected to remain firm for the short term with tight spot lead in China’s market. Eyes should be on European Central Bank President Draghi’s speech on Monday night and a possible rebound of US dollar index.