SMM Daily Review - 2011/9/29 Lead Market

SHAGNHAI, Sept. 30 (SMM) -- On Thursday, SHFE lead prices opened lower at RMB 13,895/mt, and then dipped to RMB 13,590/mt, a new low since lead futures contract was launched. Later the day, SHFE lead prices rallied to RMB 14,050-14,250/mt, and finally closed at RMB 14,360/mt, down RMB 145/mt. Trading volumes increased by 80 lots to 1,702 lots, while total positions decreased by 326 lots to 2,586 lots.

In domestic spot markets, well-known brands such as Nanfang and Chihong Zn & Ge were quoted between RMB 14,100-14,180/mt, with premiums of RMB 50/mt against SHFE 1111 lead contract prices. In the afternoon, premiums narrowed to RMB 30/mt against SHFE 1111 lead contract prices, with traded prices between RMB 14,230-14,270/mt. Downstream buyers were actively building stocks ahead of the National Day holiday, while traders were also selling goods to generate cash at the end of the month, keeping transactions brisk.