SMM Daily Review - 2011/8/11 Lead Market

SHAGNHAI, Aug. 12 (SMM) -- Thursday, SHFE 1110 lead contract prices opened lower at RMB 16,560/mt, and then fell to RMB 16,400/mt, finding support at the 5-day moving average later the day. In the afternoon, SHFE 1110 lead contract prices generally fluctuated around the moving average, with prices finally closing at RMB 16,525/mt, up RMB 130/mt. Trading volumes decreased by 1,362 lots to 1,982 lots, and total positions decreased by 28 lots to 4,586 lots.

In spot markets, well-known brands such as Nanfang, Chihong Zn & Ge and Chengyuan were mostly quoted around RMB 16,100/mt, with discounts expanding to negative RMB 350-400/mt against SHFE 1110 lead contract prices. Other brands such as Hanjiang were quoted at RMB 16,050/mt. Traders believing prices will rise were unwilling to move goods, while downstream buying interest was also low, keeping transactions quiet. In the afternoon, steady SHFE lead prices failed to boost spot prices, with transactions still muted.

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