SMM Daily Review - 2012/2/2 Lead Market

SHANGHAI, Feb 3 (SMM) – On Thursday, SHFE lead prices rose after opening at RMB 16,130/mt, but then fell to fluctuate around RMB 16,050/mt influenced by decreasing LME lead prices. In the afternoon, as Chinese domestic stocks stopped falling and regained some earlier losses, SHFE lead prices closed at RMB 16,125/mt, up RMB 130/mt. Trading volumes decreased by 214 lots to 98 lots, and positions increased by 16 lots to 1,858 lots.

In domestic spot markets, transactions were still quiet. Smelters sold goods in limited amounts, while downstream enterprises which resumed production mainly consumed inventories built ahead of the holiday, leaving low buying interest. Quotations for well-known brands such as Chihong Zn&Ge, Nanfang and Chengyuan were between RMB 15,920-15,950/mt. Other brands including Hexing were quoted at around RMB 15,750/mt. In the afternoon, despite the slight increase in LME lead prices, some traders cut prices for lead from Gejiu by RMB 20/mt due to sparse transactions.