SMM Daily Review - 2012/2/3 Lead Market

SHANGHAI, Feb 6 (SMM) – On Friday, SHFE lead prices opened RMB 100/mt lower at RMB 15,990/mt influenced by LME lead price, and then rose to RMB 16,100/mt with pressure at the 5-day moving average. In the afternoon, prices continued to increase and stood above the 16,100/mt level to finally close at RMB 16,145/mt, up RMB 20/mt. Trading volumes increased by 214 lots to 312 lots, and positions increased by 46 lots to 1,904 lots.

In domestic spot markets, prices changed little from the previous trading day and transactions were modest as market players were cautious ahead of weekend. Quotations for well-known brands such as Nanfang and Chengyuan were between RMB 15,930-15,950/mt, with discounts against the most active SHFE lead contract price at RMB 150/mt. Prices for lead from Gejiu were between RMB 15,750-15,780/mt. In the afternoon, spot market remained quiet, traders were not willing to sell goods due to bullish market outlook.