SMM Morning Review - 2010/1/21 Lead Market

SHANGHAI, Jan. 21 (SMM) -- On Wednesday, LME lead prices dropped below USD 2,300/mt, with positions plunging by 5,000 lots. Overseas markets showed strong response to the Chinese Government’s measures in tightening credit. However, China’s industrial output data coming out today are expected to stop the falling price trend.

In neighboring markets, the Dow Jones closed down 1.14% following tightening measures in China. The US dollar advanced to a 5-month high against the euro due to investor concerns towards the economic recovery, and the US dollar index ended at 78.369 as a result. Gold prices on the COMEX fell to a 2-week low on Wednesday. Gold futures for February delivery ended USD 27.4/mt lower to USD 1,112.6 per ounce. Silver futures for March delivery closed down 92 cents at USD 17.88 per ounce.

Domestic lead market is expected to trade in the RMB 16,300-16,600/mt range on Thursday.

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