SMM Lead Market Morning Review (2015-4-2)

SHANGHAI, Apr. 2 (SMM) – European manufacturing indicators improved. Sluggish economic indicators from the US caused the US dollar index to fall, boosting crude oil prices and base metals. LME lead prices rose USD 33.5/mt or 1.84%, to close the day at USD 1,852/mt. Trading volumes increased 963 to 5,528 lots, and total positions decreased 611 to 137,650. LME lead inventories fell 1,225 to 232,900. US ADP employment and ISM manufacturing data were both lackluster, boding ill for US non-farm employment. When combined with investor concerns over losses at US companies. Despite a sharp rise in LME lead prices, total positions decreased.

189,000 jobs were added in the US private sector in March, falling far short of the 225,000 expected, boding ill for US non-farm employment data scheduled for release this Friday. ISM’s March manufacturing PMI in March was 51.5, lower than the 52.5 expected and February’s 52.9. European major economic indicators, however, were upbeat, which is believed to be the result of quantitative easing. European March Manufacturing PMI was 52.2, its highest over the past 10 months. Germany’s March manufacturing PMI was 52.8, hitting an 11-month high. Manufacturing indicators from Spain and Italy were also positive.

China’s March manufacturing PMI rebounded. New home prices in China’s 100 cities averaged RMB 10,523/㎡, down 0.15% MoM, with YoY growth expanding to 4.35%.

US stocks mostly dropped while European stocks increased. The US dollar index plummeted 0.25% and COMEX crude oil prices surged 5.23%. LME base metals prices followed their own trends.

LME lead prices are expected to move between USD 1,835-1,865/mt today, and SHFE 1506 lead contract prices will hover between RMB 12,420-12,520/mt, with spot lead prices in Shanghai between RMB 12,400-12,500/mt.