SMM Morning Review - 2012/1/30 Lead Market

SHANGHAI, Jan. 30 (SMM) – LME lead prices fluctuated between USD 2,300-2,330/mt during Asian trading hours after opening at USD 2,320/mt last Friday. During European trading hours, as US GDP growth for 4Q was reported worse than expectation, non-US currencies fell significantly, dragging LME lead prices down. However, investors remained relatively optimistic toward Greek debt talk, and the Federal Reserve pledged to keep interest rates low. As a result, LME lead prices stopped declining at the tail of trading and finally closed at USD 2295.5/mt, down USD 29/mt, or 1.26%.

The US dollar index fluctuated down and closed at 78.85, and COMEX silver closed at USD 33.89/oz last Friday, up 1.56%.

On Monday, SHFE 1203 lead contract prices may gap higher and move between RMB 16,300-16,600/mt. Domestic spot prices should be RMB 16,250-16,400/mt.