SHANGHAI, Dec. 22 (SMM) – LME lead prices overnight fluctuated weakly after opening at USD 1,970/mt. Then the European Central Bank declared to offer EUR 489 billion, an amount exceeding expected EUR 300 billion, to banking sector through long-term refinancing. The news generated positive response from the market, helping LME lead prices rise to USD 1,992/mt. Later, however, since S&P downgraded ratings of Hungary and US existing home sales were lower than expected, LME lead prices fell back to the 5-day moving average, and closed at USD 1,963/mt. LME lead prices should continue to test at the 5-day moving average today.
The US dollar index hit the low point but rallied and closed at 80, and COMEX silver closed at USD 29.25/oz, down USD 0.3/oz.
SHFE lead prices may move between RMB 15,100-15,350/mt with a lack of upward momentum. In domestic spot markets, transactions will remain quiet due to tighter cash flow at both year end and month end, and spot prices should be RMB 15,150-15,250/mt.