SMM Morning Review - 2011/10/21 Lead Market

SHANGHAI, Oct. 21 (SMM) – LME lead prices overnight inched down after opened at USD 1,865/mt. As news that EU will allow EFSF to buy government bonds from the primary and secondary markets, LME lead prices stopped declines to move around USD 1,830/mt. But rumors that the summit due on October 23rd will be postponed depressed the market. As a result, LME lead prices dipped to a new low USD 1,772/mt, and closed at USD 1,790/mt, down USD 72/mt, or down 3.8%. The market will be cautious ahead of the summit, so LME lead prices should fluctuate around USD 1,800/mt level.

The US dollar index closed at 76.89.

SHFE lead prices should move between RMB 13,600-14,100/mt today, and domestic spot lead prices should be RMB 13,800-14,200/mt, with premiums of RMB 100-200/mt against SHFE 1112 lead contract prices.