LME Copper to Stay Range-Bound (2017-6-16)

The power rationing in Yunnan, Henan, and Hunan since July-August and the power rationing in Jiangxi and Guangxi in September are undoubtedly the current hot spots. According to a recent SMM survey, the power rationing in Jiangsu, Guangdong and other regions in China has continued. Since late September, the social inventory of lead ingots has declined due to the combined effects of losses, power rationing and environmental protection.

LME lead will fluctuate at highs between USD 2,460-2,490/mt today.

LME lead will trade at USD 2,480-2,520/mt on Thursday and SHFE 1709 lead will fluctuate at RMB 20,000-20,400/mt.

LME lead will trade at USD 2,320-2,355/mt on Wednesday and SHFE 1709 lead will fluctuate at RMB 19,200-19,400/mt.

Traders were active in selling goods, while firm offers kept downstream producers on sidelines, leading to sluggish transaction in those markets.

Motive battery supply is tight in China's market and will ease in mid and late June.

LME lead will move at USD 2,170-2,225/mt on Thursday and SHFE 1706 lead will move above RMB 16,000/mt at RMB 16,000-16,400/mt.

LME lead will move at USD 2,120-2,180/mt on Monday and SHFE 1706 lead is expected to fluctuate between RMB 15,700-16,250/mt.

Average operating rate at surveyed 51 Chinese lead-acid battery producers was 62.12% in March, up 3.35 percentage points MoM but down 4.41 percentage points YoY.

SHFE 1704 lead opened at RMB 18,530/mt and ended at RMB 18,570/mt, down RMB 260/mt or 1.38%.