SMM Daily Review - 2011/12/21 Lead Market

SHANGHAI, Dec. 22 (SMM) – On Wednesday, SHFE lead prices opened higher at RMB 15,180/mt influenced by the increase in LME lead prices overnight. Lead prices resisted increases as investors still stayed away from markets, but then found support at RMB 15,200/mt level, and moved around the moving average. Prices finally closed at RMB 15,170/mt, up RMB 70/mt. Trading volumes increased by 24 lots to 158 lots, and positions increased by 8 lots to 1,444 lots.

In domestic spot market, transactions were rarely reported. As lead prices rose slightly from the previous trading day, traders were actively selling goods, but downstream demand was weak. Quotations for well-known brands such as Nanfang, Chihong Zn & Ge were around RMB 15,250/mt, with premiums against SHFE 1202 lead contract prices of RMB 30-40/mt. Other brands such as Jingui and the brand from Fujian were traded at RMB 15,170-15,200/mt. In the afternoon, market was quiet with limited deals made.