LME copper price is likely to stay at $ 4,980-5,150 yuan per ton this week, while LME lead should move in a tight range between $1,670-1,720 per ton this week. LME copper price is likely to stay at $ 4,980-5,150 yuan per ton next week, SMM predicts. “Technically, LME copper has been treading water around the 20-day moving average since last Thursday, and is unlikely to rise significantly,” SMM analyst says.
In China, Interbank interest rate increased some lately, presaging tightening liquidity conditions. This leads markets to believe the PBOC may cut RRR again. At the same time, volatility in China’s stock market will grow. In this context, SHFE copper prices are likely to remain resistant to declines and move at 38,300-39,500 yuan per ton this week.
LME lead should move in a tight range between $1,670-1,720 per ton next week, SMM lead group reckons. Growing longs exit market and strong resistance forms at $1,720 per ton for LME lead. SHFE 1510 lead is likely to test support at 13,100 yuan per ton next week. SHFE lead outshined LME lead last week, pushing SMM/LME lead price ratio up to 7.84. The high ratio leaves downside room open for SHFE lead. Besides, sell-off pressures suffered by SHFE lead appear on Friday.
Chinese spot lead may fall slightly to 13,100-13,350 yuan per ton next week. Cash-hungry lead smelters will show great enthusiasm in selling late Aug. Lead-acid battery makers shut down by Beijing’s parade on Sep. 3 and hence, demand will be depressed by poor operating rate at battery makers. This will not lead support to lead prices. However, shortfall in secondary lead will shift more buyers to primary lead, boding well for lead prices.
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