SMM Daily Review - 2011/9/7 Lead Market

SHAGNHAI, Sept. 8 (SMM) -- On Wednesday, SHFE 1110 lead contract prices opened higher at RMB 16,520/mt, moving around RMB 16,500/mt after opening, and rose along with stocks prices as of 11:00 am to touch RMB 16,665/mt. Finally, SHFE 1110 lead contract prices closed at RMB 16,660/mt, up RMB 215/mt, or up 1.31%. Trading volumes decreased by 204 lots to 500 lots, and total positions decreased by 84 lots to 3,710 lots.

In domestic spot markets, spot discounts of well-known brands such as Nanfang and Chihong Zn & Ge were around negative RMB 300/mt, with traded prices between RMB 16,180-16,220/mt, while quotations of other brands were rarely reported. Downstream buyers purchased modestly given steady SHFE lead prices in the morning session. Spot prices were between RMB 16,250-16,300/mt in the afternoon while spot discounts remained between negative RMB 300-320/mt. A wait-and-see sentiment dominated the market due to rising lead prices.