SMM Morning Review - 2011/9/28 Lead Market

SHANGHAI, Sept. 28 (SMM)--Concerns over Europe's debt crisis mitigated as policy makers will cope with the crisis hand in hand. As a result, the US dollar index fell to 78, boosting base metals prices. LME lead prices rallied to RMB 2,000/mt level, but met resistance at the 5-day moving average, with prices closing at USD 2,028/mt, up USD 126/mt, or up 6.62%. Premiums against LME three-month lead contract prices rose to USD 18/mt. LME lead prices should struggle at RMB 2,000/mt level today.

The US dollar index closed at 77.765

Domestic spot lead prices should be between RMB 14,300-14,800/mt. Spot lead prices should be RMB 0-100/mt lower than SHFE 1111 lead contract prices, expected to be between RMB 14,300-14,600/mt.