SMM Daily Review - 2011/10/18 Lead Market

SHAGNHAI, Oct. 19 (SMM) -- On Tuesday, SHFE lead prices opened lower at RMB 14,725/mt, dragged down by LME lead prices overnight, then continued to fall. China's GDP dropped for the third quarter, despite industry data improved. As a result, SHFE lead prices met resistance at the 10-day moving average, and closed at RMB 14,420/mt, down RMB 620/mt, or a drop of 4.12%. Trading volumes increased by 140 lots to 632 lots, and total positions decreased by 220 lots to 1,486 lots.

In domestic spot markets, spot prices were RMB 50/mt higher than SHFE 1111 lead contract prices. Well-known brands such as Nanfang, Chengyuan, Shuikoushan and Yubei were quoted around RMB 14,650/mt, with transactions quiet. The brand Chihong Zn & Ge was quoted around RMB 14,670/mt, with quotations of the Gejiu brand rarely reported. In the afternoon, spot prices were between RMB 14,600-14,650/mt, with premiums unchanged at RMB 50/mt against SHFE 1111 lead contract prices. Smelters were holding goods at lower prices, keeping goods supply limited in the market. Downstream buyers purchased modestly, leaving transactions muted.