SMM Daily Review - 2011/9/16 Lead Market

SHAGNHAI, Sept. 19 (SMM) -- Last Friday, SHFE 1110 lead contract prices opened higher at RMB 16,425/mt, touching RMB 16,565/mt and meeting resistance at the 5-day moving average, and inched down to a new low last seen on August 10, at RMB 16,280/mt. Finally, SHFE 1110 lead contract prices closed at RMB 16,350/mt, down RMB 70/mt. Trading volumes increased by 140 lots to 536 lots, and total positions decreased by 224 lots to 3,126 lots.

In domestic spot markets, well-known brands such as Nanfang and Chihong Zn & Ge were quoted between RMB 16,130-16,150/mt, with discounts of negative RMB 200/mt against SHFE 1110 lead contract prices. The Hanjiang brand was quoted around RMB 16,100/mt. In the afternoon, prices remained relatively unchanged. The market was cautious ahead of the weekend, while some downstream buyers purchased on an as-needed basis.