SMM Daily Review - 2011/8/17 Lead Market

SHAGNHAI, Aug. 18 (SMM) -- On Wednesday, SHFE lead prices opened lower at RMB 16,455/mt, and then rose further to RMB 16,600/mt, with prices moving between RMB 16,630-16,670/mt. In the afternoon, SHFE lead prices edged up to RMB 16,695/mt in tandem with rising LME lead prices, and finally closed at RMB 16,655/mt, up RMB 205/mt, or up 1.25%. Trading volumes decreased by 842 lots to 478 lots, and total positions decreased by 112 lots to 4,802 lots.

In domestic spot markets, as SHFE lead prices opened lower but edged up later, well-known brand Chihong Zn & Ge was generally quoted at RMB 16,250/mt, with discounts of negative RMB 350-400/mt against SHFE 1110 lead contract prices, but with traded prices concentrating at RMB 16,200/mt. Other brands such as Hanjiang and Shuikoushan were quoted between RMB 16,150-16,200/mt. As SHFE lead prices were steady in the afternoon, well-known brands such as Chihong Zn & Ge and Nanfang were traded at RMB 16,250/mt, with traded for other brands remaining unchanged. As downstream buyers were cautious due to price volatility, the overall transactions were quiet.