LEAD SNAPPED EARLIER SESSION GAINS AT MCXF
DATE: 03/05/2012
Battery material Lead for delivery in May 2012 shed by 0.8% or Rs 0.9 at Rs 113.15 per kg on Wednesday, 2nd May and tested an intraday high at Rs 114.85 per kg and low at Rs 113 per kg. Lead, which was in uptrend during April 2012, dropped snapping the earlier session gains with 1.4% dip in its open interest to 9710 lots. Even though the Lead was in at higher levels as the demand for the lead acid batteries in China restricted the metal further fall in the metal. The contract traded above 9-day EMA and was found to be still in overbought region with its RSI at 70.13.
At LME, Lead fell by 0.2% at $2149 per tonne on Wednesday as the bleak economic data from the US and Europe hampered the metal but the fundamental support pared huge losses in the metal.
Lead is likely to find the support at Rs 112.6 per kg and Rs 112 per kg and resistance at Rs 114 per kg and Rs 114.7 per kg on Thursday, 3rd May.
Chinese lead demand will increase by 7.3% in 2012 while its production is expected to reach 2.54 million tonnes, accounting for 52% of world output, as per International Lead and Zinc Study Group (ILZSG) in its current outlook for trends in world supply and demand for lead during 2012.
POWERED BY: COMMODITY INSIGHTS
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