SMM Daily Review - 2011/8/31 Lead Market

SHAGNHAI, Sept. 1 (SMM) -- On Wednesday, SHFE lead prices opened higher at RMB 16,940/mt, boosted by LME lead prices overnight, once touching RMB 16,985/mt, but met resistance at RMB 17,000/mt level, finding support at the 5-day moving average. In the afternoon, SHFE lead prices rallied due to rising stock markets, with prices finally closing at RMB 16,955/mt, up RMB 35/mt. Trading volumes increased by 178 lots to 1,166 lots, while total positions decreased by 58 lots to 4,134 lots.

In domestic spot markets, discounts of well-know brands remained around negative RMB 450/mt against SHFE 1110 lead contract prices, with brands such as Nanfang and Chihong Zn & Ge quoted at RMB 16,500/mt. In the afternoon, prices for Chihong Zn & Ge and Nanfang rose to RMB 16,500/mt, pushed up by SHFE lead prices, but with prices for other brands remaining relatively unchanged. Transactions were quiet due to cash flow problems at the end of the month.