SMM Daily Review - 2012/1/5 Lead Market

SHANGHAI, Jan. 6 (SMM) – On Thursday, SHFE lead prices rose to closing price on previous trading day soon after opening lower at RMB 15,270/mt, and moved between RMB 15,330-15,380/mt. In the afternoon, prices continued to fluctuate narrowly with strong support at the 5-day moving average and finally closed at RMB 15,370/mt, up RMB 60/mt. Trading volumes decreased by 162 lots to 194 lots, and positions decreased by 16 lots to 1,102 lots.

According to traders, selling interest improved due to scope for arbitrage, but supply was relatively tight in the market. Downstream buying interest remained high after the New Year’s holiday. In domestic spot markets, quotations for well-known brands such as Nanfang and Chihong Zn & Ge were between RMB 15,300-15,340/mt. Quotations for other brands including Hexing and Tianma were at RMB 15,270-15,280/mt. Prices remained unchanged basically in the afternoon. Transactions improved in general.