SMM Daily Review - 2011/12/16 Lead Market

SHANGHAI, Dec. 19 (SMM) – On Friday, SHFE 1202 lead contract became the most actively traded. Prices opened at RMB 15,150/mt and moved around the level. In the afternoon, SHFE lead prices moved higher to RMB 15,200/mt due to increases in both LME lead prices and domestic stock market, and rose further at the tail of trading to RMB 15,300/mt, but met resistance at the 30-day moving average, with prices finally closing at RMB 15,300/mt, up RMB 265/mt, or 1.76%. Trading volumes decreased by 242 lots to 550 lots, and positions increased by 50 lots to 1,308 lots.

As lead prices edged up slightly ahead of the weekend, market became quiet. Quotations for domestic well-known brands such as Nanfang, Chihong Zn & Ge were between RMB 15,200-15,230/mt, with premiums against the most active SHFE lead contract prices of RMB 50/mt. Lead from Dongling and other branded lead were traded at around RMB 15,150/mt. In the afternoon, although SHFE lead prices rose slightly, spot market remained still quiet.