SMM Daily Review - 2012/2/1 Lead Market

SHANGHAI, Feb 2 (SMM) – On Wednesday, SHFE lead prices opened slightly lower at RMB 16,100/mt, and then rose to touch RMB 16,130/mt briefly due to the better-than-expected PMI data released by China’s National Bureau of Statistics. Later, however, prices fell to fluctuate between RMB 16,000-16,080/mt for a lack of upward momentum, and finally closed at RMB 15,995/mt, down RMB 165/mt, a decline of 1.02%. Trading volumes increased by 36 lots to 312 lots, and positions decreased by 50 lots to 1,842 lots.

In domestic spot markets, transactions were limited due to weak demand. Quotations for well-known brands such as Chihong Zn&Ge, Shuikoushan and Chengyuan were between RMB 15,950-16,000/mt, with discounts against the most active SHFE lead contract prices at RMB 60-100/mt. Other brands including lead from Yunnan Province were quoted at around RMB 15,850/mt. In the afternoon, spot prices decreased by RMB 20/mt, prices for most branded lead were below RMB 16,000/mt. Production at smelters and downstream enterprises did not fully restart, wait-and-see sentiment still dominated the markets.