SMM Morning Review - 2011/11/7 Lead Market

SHANGHAI, Nov. 7 (SMM) – LME lead prices overnight opened at USD 2,036/mt and then fluctuated upward to USD 2,065/mt. US Non-farm Payrolls for October increased by 80,000, lower than expected 95,000, resulting in depressed market mood. However, US unemployment rate in October decreased to 9.0%, better than expected 9.1%. Thus, during European trading session, LME lead prices reported limited declines, and only surrendered early gains to close at USD 2,048/mt. The G20 summit has not achieved substantial results, and meeting of EU finance ministers will become market focus. Coupled with cautious sentiment in the market, LME lead prices should move between USD 2,020-2,070/mt.

The US dollar index surged up but fell down later, and closed at 76.91.

SHFE lead prices may move at RMB 15,200-15,600/mt, and domestic spot lead prices should be RMB 15,350-15,550/mt on Monday.