SMM Daily Review - 2011/11/1 Lead Market

SHAGNHAI, Nov. 2 (SMM) -- On Tuesday, SHFE lead prices opened at RMB 15,450/mt, and then fluctuated widely between RMB 15,360-15,430/mt as China's PMI fell in October. Dragged down by domestic stock markets and LME lead prices, SHFE lead prices plunged to RMB 15,275/mt, finding support at the 5-day moving average. In the afternoon, SHFE lead prices moved between RMB 15,300-15,350/mt, and finally closed at RMB 15,315/mt, down RMB 55/mt. Trading volumes decreased by 140 lots to 620 lots, and total positions increased by 40 lots to 2,026 lots.

In domestic spot markets, well-known brands such as Nanfang, Chihong Zn & Ge and Hanjiang were quoted between RMB 15,400-15,480/mt, close to SHFE lead prices, and other bands were quoted around RMB 15,350/mt. In the afternoon, prices of well-known brands were cut to RMB 15,400/mt. Traders reduced purchases due to high quotations by smelters, while downstream buyers were cautious, leaving transactions quiet.