SMM Daily Review - 2011/8/5 Lead Market

SHAGNHAI, Aug. 8 (SMM) -- Last Friday, SHFE lead prices opened lower at RMB 16,560/mt, and slumped to RMB 15,960/mt after opening, down as much as 5.9% within ten minutes. Later the day, SHFE lead prices rallied slightly to the moving average and continue fluctuating in the afternoon, with prices finally closing at RMB 16,270/mt, down RMB 650/mt, or down 3.84%. Trading volumes increased by 1,004 lots to 1,696 lots, and total positions decreased by 970 lots to 4,232 lots.

SHFE lead prices opened lower and slide by RMB 815/mt once within in ten minutes, although prices rallied to the moving average later, market confidence was depressed. Domestic well-known brand Nanfang was quoted between RMB 16,000-16,050/mt, with discounts narrowing further to negative RMB 250-300/mt. Other brands such as Baiyin and Jianghan were quoted around RMB 15,950/mt. In the afternoon, offers for Nanfang brand fell to RMB 15,900-15,950/mt. Arbitragers were aggressively moving goods, while downstream buyers were purchasing modestly at lower prices, causing transactions to improve.

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