SMM Morning Review - 2010/2/2 Lead Market

SHANGHAI, Feb. 2 (SMM) -- LME base metals markets finally stabilized, with prices ending higher following a weaker US dollar. Buying interest was stimulated when LME lead prices were around USD 2,000/mt. Fluctuations in financial markets continued to influence base metal market performance. Particular attention should be paid to systemic risks, rather than be eager to bottom-fish.

In neighboring markets, the US dollar fell from a 6-month high on Monday, with the US dollar index closing at 79.194. Gold futures on the COMEX ended 2% higher on Monday, the largest daily increase over the past three months, as gold drew investment attraction following US's stronger economic data. Gold futures for April delivery ended up USD 21.2 to USD 1,105 per ounce, and silver futures for March delivery closed cents 47 higher to USD 16.66 per ounce.

Domestic lead market is expected to trade around RMB 15,300/mt.

To contact the writer on this report: Sherryshi@smm.cn

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