SMM Morning Review - 2012/1/16 Lead Market

SHANGHAI, Jan. 16 (SMM) – LME lead prices overnight rose and touched USD 2,048/mt due to the falling US dollar index after opening at USD 2,025/mt. Later, however, as European central banks’ deposit at the ECB hit a new high and the result of Italian bonds auction was plain, plus S&P’s downgrade of eurozone countries, LME lead prices fluctuated down. At the tail of trading, LME lead prices stopped falling and finally closed at USD 2,020/mt due to the above-expectation January Michigan Consumer Confidence Index.

The US dollar index rose to 81.78, a new high since September 2010, and COMEX silver closed at USD 29.52/oz, down 1.92%.

On Monday, SHFE lead prices may move between RMB 15,200-15,450/mt, and domestic spot prices should be RMB 15,250-15,400/mt.