SMM Morning Review - 2011/12/13 Lead Market

SHANGHAI, Dec. 13 (SMM) – LME lead prices overnight opened at USD 2,148/mt and then fluctuated narrowly. During European trading session, as the long-term reform proposed in the EU summit will not be implemented until 2H 2012, and no more measures are now available for the European debt issues. As a result, market players remained cautious. Besides, Moody’s reported that the situation in eurozone was still unstable and it might reevaluate eurozone’s sovereign debt ratings. In this context, LME lead prices kept falling to USD 2,082/mt, and closed at USD 2,100/mt, down USD 50/mt, or 2.34%. LME lead prices should test at USD 2,100/mt mark.

The US dollar index moved up and closed at 79.56, up 0.99, and COMEX silver closed at USD 31/oz, down USD 1.23/oz, or 3.8%.

SHFE lead prices may open lower and move between RMB 15,400-15,700/mt on Tuesday, and domestic spot prices should be RMB 15,500-15,650/mt.