SMM Morning Review - 2011/10/27 Lead Market

SHANGHAI, Oct. 27 (SMM) – LME lead prices overnight opened at USD 1,960/mt and then moved between USD 1,960-2,000/mt. EU officials said it will be weeks before the start of Greece's debt exchange operation, depressing market sentiment. As a result, LME lead prices plummeted to USD 1,915/mt, but finding support at the 5-day moving average. The EU summit resulted in an agreement on the solution of Greek debt crisis, while US durable goods orders grew most rapidly in 6 months, and US new home sales hit a 5-month high, all booting market confidence. In this context, LME lead prices gained back previous losses to close at USD 1,930/mt, down USD 83.3/mt, or down 4.14%. LME lead prices should move between USD 1,920-2,000/mt today.

The US dollar index closed at 76.25.

SHFE lead prices should move between RMB 14,780-15,300/mt today, and domestic spot lead prices should be RMB 14,900-15,250/mt.