SMM Daily Review - 2011/8/24 Lead Market

SHAGNHAI, Aug. 25 (SMM) -- On Wednesday, SHFE 1110 lead contract prices opened higher at RMB 16,790/mt but met resistance at the 2-day moving average, with prices falling RMB 100/mt, to as low as RMB 16,650/mt in the morning. Later the day, SHFE 1110 lead contract prices generally moved between RMB 16,670-16,730/mt and then fell to move around the intraday low, with prices finally closing at RMB 16,650/mt. Trading volumes increased by 102 lots to 824 lots, and total positions decreased slightly by 46 lots to 4,282 lots.

In domestic spot markets, spot lead prices rose RMB 100/mt from the previous trading day as SHFE 1110 lead contract prices opened higher. Well-known brands such as Nanfang, Chihong Zn & Ge and Shuikoushan were quoted between RMB 16,250-16,300/mt, with discounts of negative RMB 400-420/mt against SHFE 1110 lead contract prices. Other brands such as Hanjiang and Shuangyan were quoted between RMB 16,200-16,220/mt. Downstream buyers stood out of the market at higher prices, keeping transactions quiet.