SMM Daily Review - 2011/8/23 Lead Market

SHAGNHAI, Aug. 24 (SMM) -- On Tuesday, SHFE 1110 lead contract prices opened slightly lower at RMB 16,550/mt, and surged to RMB 16,665/mt. The preliminary HSBC PMI was slightly higher than July’s level at 49.8, but still showed a disappointing economic condition, weighing down SHFE lead prices to fluctuate around the moving average, with prices rallying to close at RMB 16,650/mt, up RMB 80/mt. Trading volumes decreased by 566 lots to 702 lots, while total positions increased by 88 lots to 4,328 lots.

In domestic spot markets, Brands such as Chihong Zn & Ge, Nanfang and Chengyuan were mostly quoted between RMB 16,200-16,230/mt, with discounts of negative RMB 400/mt against SHFE 1110 lead contract prices. Other brands such as Tianma and Shuangyan were quoted between RMB 16,120-16,130/mt. Transactions of well-known brands were quiet due to higher prices, but transactions for other brands improved. SHFE lead prices fell in the afternoon, with prices of well-known brands down to RMB 16,170/mt. But there were traders reporting prices of well-know brands rallied to RMB 16,200/mt along with SHFE lead prices, while prices of other brands remained relatively unchanged, and with transactions muted.