SMM Brief Review - 2011/12/27 SHFE Lead Futures

The power rationing in Yunnan, Henan, and Hunan since July-August and the power rationing in Jiangxi and Guangxi in September are undoubtedly the current hot spots. According to a recent SMM survey, the power rationing in Jiangsu, Guangdong and other regions in China has continued. Since late September, the social inventory of lead ingots has declined due to the combined effects of losses, power rationing and environmental protection.

LME lead will fluctuate at highs between USD 2,460-2,490/mt today.

LME zinc net longs held by fund managers decreased to an over 2-month low in the week ended September 8, according to LME report.

Net long positions on LME copper held by fund managers decreased noticeably in the week ended September 8 after growing for 7 weeks in a row, according to LME report.

Net long positions on LME zinc held by fund managers grew in the week ended September 1, according to LME report.

Net long positions on LME tin held by fund managers increased 19 to 1,260 lots in the week ended September 1, growing for 3 weeks in a row, according to LME report. 

Net long positions on LME lead increased 1,153 to 21,545 lots in the week ended September 1, after falling for three weeks in a row, according to the LME. 

The Shanghai Futures Exchange (SHFE) released restrictions on zinc contracts transactions.

Motive battery supply is tight in China's market and will ease in mid and late June.

Average operating rate at surveyed 51 Chinese lead-acid battery producers was 62.12% in March, up 3.35 percentage points MoM but down 4.41 percentage points YoY.