SHANGHAI, Nov. 12 (SMM) – LME lead opened with a negative gap at USD 1,625/mt overnight and once sank to USD 1,582/mt, hurt by China’s poor industrial output data and slipping crude oil prices. Later, LME lead regained some losses thanks to a decline in dollar and closed at USD 1,627/mt, down by USD 9/mt or 0.55%. Trading volumes fell 455 to 4,439 lots while positions were up 1,734 to 125,472.
SHFE 1601 lead started at RMB 12,650/mt for night trading Wednesday and touched a low of RMB 12,450/mt. However, the contract rallied, tracing LME lead, and ended at RMB 12,625/mt, down by RMB 50/mt or 0.39%. Trading volumes reduced 376 to 3,368 lots whilst positions grew 390 to 11,074.
China’s industrial output fell to the lowest since the global financial crisis and crude oil prices posted declines, weighing on base metals prices. Eyes will be on US continuing and initial jobless claims and US dollar should stays at high. LME lead will move in USD 1,610-1,630/mt during Asian trading hours. SHFE 1601 lead should range between RMB 12,550-12,700/mt on Nov. 12. In China’s spot lead market, supply is not very ample and demand still stays soft. Spot lead is predicted to trade between RMB 12,900-13,050/mt.