SMM Daily Review - 2011/9/6 Lead Market

SHAGNHAI, Sept. 7 (SMM) -- On Tuesday, SHFE lead prices opened slightly lower at RMB 16,515/mt and then fluctuated around the moving average. Dragged down by LME lead prices, SHFE lead prices plummeted to RMB 16,360/mt at noon, and moved between RMB 16,360-16,400/mt in the afternoon, with prices finally closing at RMB 16,445/mt, down RMB 110/mt. Trading volumes only increased by 6 lots to 704 lots, while total positions decreased by 6 lots to 3,794 lots.

In domestic spot markets, spot prices were RMB 100-150/mt lower than the previous trading day’s. Well-known brands such as Nanfang and Chihong Zn & Ge were quoted around RMB 16,200/mt, with discounts of negative RMB 300/mt against SHFE 1110 lead contract prices. Spot prices further dropped to RMB 16,150/mt as of 11:00 am with SHFE lead prices. SHFE lead prices moved around RMB 16,400/mt in the afternoon, dragging down traded prices of Chihong Zn & Ge to RMB 16,100/mt, while Nanfang was traded between RMB 16,060-16,080/mt, and Shuangyan and Hanjiang were generally quoted around RMB 16,050/mt. As prices had fallen to the RMB 16,000/mt level, smelters were reluctant to sell goods, causing goods supply available in the market to fall, while players were also cautious, leaving transactions quiet.