SMM Daily Review - 2011/10/27 Lead Market

SHAGNHAI, Oct. 28 (SMM) -- On Thursday, SHFE 1112 lead contract prices opened at RMB 15,080/mt, then dipped to as low as RMB 14,950/mt. Boosted by domestic stock market and strong buying interest, SHFE lead prices rebounded to RMB 15,000-15,100/mt, and finally closed at RMB 15,105/mt. Trading volumes decreased by 280 lots to 690 lots, and total positions increased by 14 lots to 1,992 lots.

In domestic spot market, well-known brands such as Chengyuan and Chihong Zn & Ge were quoted between RMB 15,150-15,170/mt in the morning session, with premiums of RMB 50/mt against SHFE 1112 lead contract prices. The brands Baiyin and Hanjiang were traded around RMB 15,100/mt. In the afternoon, SHFE lead prices fluctuated narrowly, with spot lead traded around RMB 15,150/mt. Smelters increased goods supply to generate cash near the end of the month, while downstream buying interest was low.