SMM Morning Review - 2011/11/29 Lead Market

SHANGHAI, Nov. 29 (SMM) – LME lead prices overnight moved between USD 2,015-2,030/mt after opening at USD 2,014/mt. During European trading session, risk appetite was boosted in the market since consumption in US surged to as high as USD 11.4 billion during the Thanksgiving Day holiday and it was reported that European finance ministers would consider providing security to the debt-ridden countries. As a result, LME lead prices rose to hit USD 2,060/mt, but met resistance at the 60-day moving average and finally closed at RMB 2,028/mt, up 1.4%. LME lead prices are expected to move between USD 2,000-2,050/mt with pressure under the 60-day moving average.

The US dollar index tested at 79 and closed at 79.23, and COMEX silver closed at USD 32.16/oz, up USD 1.16/oz, or 3.75%.

SHFE lead prices may open slightly higher and move between RMB 15,200-15,550/mt on Tuesday, and domestic spot price should be RMB 15,350-15,500/mt. Buyers will remain cautious in purchasing.