SMM Morning Review - 2010/5/7 Lead Market

SHANGHAI, May 7 (SMM) -- On Thursday, the US dollar index advanced above 85, and so base metal markets remained sluggish. LME lead prices tested a low level of USD 1,920/mt seen in earlier February, finally closing at USD 1,975/mt. Although buying activities at low levels helped base metals erase some losses, with LME lead prices closing slightly high, short positions will remain strong in the short term, which will leave the trend of falling unchanged in base metal markets.

In neighboring markets, the euro hit a new low against the dollar since March 2009 following investors rushing into the safety of the dollar, and the yen soared as well. The US dollar index closed at 84.762. Gold futures for June delivery closed at USD 1,197.30 per ounce, up USD 22.30. Silver futures for July delivery ended 1.9 cents lower to USD 17.515 per ounce.

Domestic lead market is expected to trade in the RMB 15,200-15,400/mt range on Friday.

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

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