SMM Brief Review - 2012/1/19 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.

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

LME lead will move at USD 2,170-2,225/mt on Thursday and SHFE 1706 lead will move above RMB 16,000/mt at RMB 16,000-16,400/mt.

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.

SHFE 1703 lead started at RMB 19,070/mt and finally closed at RMB 18,800/mt.

LME lead is expected to range between USD 2,100-2,200/mt on Thursday and SHFE 1702 lead will move at RMB 18,000-19,000/mt .

SHFE 1702 lead started at RMB 18,800/mt and finally ended at RMB 18,780/mt, up RMB 315/mt or 1.71%.

LME lead will range between USD 2,000-2,080/mt on Friday and SHFE 1702 lead is expected to move at RMB 17,400-18,200/mt.

CME Group reports record metals volume occurred during the fourth quarter.