SMM Morning Review - 2011/3/25 Lead Market

SHANGHAI, Mar.25 (SMM) – On Thursday, the US durable product orders in February fell 0.9%, the largest decline over the past four months, lower than expected 1.1%, an indication of slower US economic growth. However, LME lead prices still closed USD 42.3/mt up at USD 2,744.8/mt, hitting a new record high since April 2008, due to a weakened US dollar index from anticipation of possible interest rate hike from the European central bank. LME lead prices are showing great resistance at higher prices now, and are expected to fluctuate at around USD 2,700/mt for consolidation in the short term.

In neighboring markets, the US dollar index settled at 75.848. The gold futures for April delivery closed USD 3.10 lower at USD 1,434.90 per ounce; the silver futures for May delivery closed 17.7 cents up at USD 37.375 per ounce.

SMM expects transactions in domestic lead spot markets to be made between RMB 17,700-17,900/mt on Friday.   

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