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SMM Morning Review - 2011/11/11 Lead Market
Nov 11,2011 10:12CST
smm insight
LME lead prices kept falling after opening due to increasing US dollar index but retook part of early losses later.

SHANGHAI, Nov. 11 (SMM) – Italian borrowing costs eased as European Central Bank (ECB) was reported to buy bonds of the country. Besides, Former ECB vice-president Lucas Papademos was named as Greece's interim prime minister, market concerns over Greece were moderated. However, European commission reduced estimate for growth in Euro zone to 0.6%, and declared there was a risk of “deeper and consistent recession”. Plus Chinese trade surplus in October was lower than expected with only RMB 17.03 billion. In this context, LME lead prices were under pressure below all moving averages and kept falling after opening due to increasing US dollar index. Prices hit the USD 1,908/mt low and fluctuated between USD 1,935-1,955/mt. Later, LME lead prices retook part of early losses as S&P remained France's ratings at "AAA", with prices closed at USD 1,945/mt, down USD 31/mt. Concerns on European debt issues still remain, but no further negative news is reported, and so LME lead prices should move between USD 1,915-1,975/mt.

US dollar Index surged to 78.165 but fell down later, and closed at 77.6.

On Friday, SHFE lead prices should move at RMB 14,800-15,100/mt, and spot premiums over SHFE three-month lead contract will be at around RMB 0-50/mt, with spot deals expected between RMB 14,900-15,100/mt .

LME lead prices

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