SMM Morning Review - 2012/2/7 Lead Market

SHANGHAI, Feb. 7 (SMM) – LME lead prices overnight opened at USD 2,224.5/mt and fluctuated weakly at the level. During European trading session, Greece failed to reach an agreement on the debt talk, adding investors’ concerns over the European debt crisis. As a result, the US dollar index rose, dragging LME lead prices to close at USD 2,188/mt, down USD 38/mt or 1.7%. Trading volumes decreased by 1,597 lots to 4,374 lots, and positions increased by 479 lots to 111,000 lots. LME lead inventories were down 500 mt to 374,800 mt.

The US dollar index closed at 79.1, and COMEX silver closed at USD 33.8/oz, up USD 0.1/oz.

On Tuesday, SHFE lead prices may move between RMB 16,100-16,300/mt with strong support at the 5-day moving average. Domestic spot prices should be between RMB 15,850-16,100/mt.