SMM Morning Review - 2010/1/14 Lead Market

SHANGHAI, Jan. 14 (SMM) -- LME lead prices closed up USD 83/mt at USD 2,485/mt on January 13th, supported by easing concerns towards tightening monetary policy in China, and a belief in a sustainable economic recovery in China. Market paid its attention on Chinese import and export data once again. According to China Customs, China’s import and export value totaled at USD 243.02 billion in December 2009, up 32.7% YoY, and up 16.7% MoM. Of those, the exports were valued at USD 130.73 billion, the fourth highest level in the history. The value of imports was USD 112.29 billion, a new record high. The strong import and export data indicates China's foreign trade is speeding up the recovery, and this will be positive for the global economic recovery, improving market sentiment. However, concerns toward tightening liquidity remain.

In this context, SMM believes lead market will represent slightly downward corrections, with prices expected in the USD 2,400-2,500/mt range.

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