SMM Daily Review - 2011/11/16 Lead Market

SHANGHAI, Nov. 17 (SMM) – SHFE lead prices surged to RMB 15,435/mt after opening at RMB 15,405/mt on Wednesday. Later the day, prices moved lower between RMB 15,320-15,370/mt around 10:00 a.m. with falling domestic stock market. In the afternoon, SHFE lead prices continued to slump, hitting RMB 15,240/mt, but gained support at 10-day moving average, and finally closed at RMB 15,265/mt, down RMB 60/mt. Trading volumes increased by 278 lots to 714 lots, and positions dropped by 264 lots to 1,428 lots.

SHFE lead prices rose after opening and then rolled back on Wednesday. Quotations for domestic well-known brands such as Nanfang, Chihong Zn & Ge, Yuguang and Chengyuan were around RMB 15,400/mt, with premiums against SHFE 1112 lead contract prices of RMB 30/mt. Traded prices of other lead brands such as Fujiang and Hanjiang were around RMB 15,330-15,350/mt. In the afternoon, spot lead prices fell along with falling SHFE lead prices, and quotations for Nanfang, Chihong Zn & Ge, Yuguang and Baiyin were around RMB 15,320-15,350/mt. Most smelters moved goods for long-term contracts, and most downstream buyers stayed away from the market, leaving transactions even quieter in the afternoon.