SMM Daily Review - 2011/8/19 Lead Market

SHAGNHAI, Aug. 22 (SMM) -- Last Friday, SHFE 1110 lead contract prices opened lower at RMB 16,420/mt, dragged down by LME lead prices overnight, and then rallied to RMB 16,500-16,580/mt, touching as high as RMB 16,600/mt but meeting resistance at the 5-day moving average. In the afternoon, SHFE 1110 lead contract prices moved around the moving average, with prices finally closing at the intraday high at RMB 16,600/mt. Trading volumes increased by 288 lots to 1,862 lots, while total positions decreased by 156 lots to 4,298 lots.

In domestic spot markets, well-known brands such as Nanfang and Chihong Zn & Ge were quoted between RMB 16,180-16,200/mt, with discounts against SHFE 1110 lead contract prices negative RMB 350-400/mt. Other brands such as Jinguan and Tianma were quoted between RMB 16,050-16,100/mt. Spot prices fell by RMB 20/mt in the afternoon due to bearish SHFE lead prices, with well-known brands quoted between RMB 16,150-16,180/mt. Downstream buyers increased purchases at lower prices, causing transactions to improve.