SMM Daily Review - 2011/12/13 Lead Market

SHANGHAI, Dec. 14 (SMM) – On Tuesday, SHFE lead prices opened RMB 150/mt lower at RMB 15,515/mt and moved around the daily moving average, with pressure at the 5 and 10-day moving averages, but found support at the 20-day moving average. Prices moved between RMB 15,520-15,560/mt and finally closed at RMB 15,520/mt, down RMB 140/mt. Trading volumes decreased by 28 lots to 224 lots, and positions decreased by 104 lots to 1,842 lots.

In domestic spot markets, quotations for domestic well-known brands such as Nanfang, Chihong Zn & Ge were firm at RMB 15,550/mt. Other brands such as Chengyuan were traded at RMB 15,510-15,530/mt. In the afternoon, SHFE lead prices remained stable, but quotations for branded lead in spot markets were once cut to RMB 15,500/mt. Goods from Gejiu such as Hexing were traded at RMB 15,470-15,480/mt. Smelters were more reluctant to move goods due to dropping lead prices. Downstream buyers stayed away from the market over bearish outlook. Deals were limited in the market.