SMM Daily Review - 2011/10/25 Lead Market

SHAGNHAI, Oct. 26 (SMM) -- On Tuesday, SHFE lead prices opened at RMB 15,330/mt and fluctuated around the moving average in the morning session. SHFE lead prices surged to RMB 15,650/mt at noon, and fell with LME lead prices in the afternoon, with prices finally closing at RMB 15,095/mt. Trading volumes increased by 970 lots to 2,540 lots, and total positions decreased by 102 lots to 2,038 lots.

In domestic spot markets, well-known brands such as Chihong Zn & Ge and Nanfang were quoted between RMB 15,080-15,130/mt, close to SHFE three-month lead contract prices. Spot prices rose to RMB 15,300/mt at noon as a large number of longs entered the market, but with market players cautious. In the afternoon, spot prices fell to RMB 15,200/mt with SHFE lead prices. Traders and downstream buyers were cautious due to fluctuating lead prices, with transactions muted.