SMM Daily Review - 2012/2/9 Lead Market

SHANGHAI, Feb. 10 (SMM) – On Thursday, SHFE lead prices opened at RMB 16,110/mt and rose to touch a high of RMB 16,205/mt due to the increasing Chinese domestic stocks. At midday, however, prices dropped by as much as RMB 100/mt within 5 minutes due to the decrease of SHFE copper prices, and surrendered earlier gains. SHFE lead prices moved between RMB 16,080-16,100/mt in the afternoon and finally closed at RMB 16,080/mt, down RMB 160/mt. Trading volumes increased by 166 lots to 322 lots, and positions decreased by 152 lots to 1,718 lots.

Prices for domestic well-known brands such as Chihong Zn & Ge and Chengyuan were at RMB 15,980-16,000/mt, with discounts against the most active SHFE lead contract price at RMB 150/mt. Quotations for lead from Gejiu were rarely reported. In the afternoon, spot prices were firm, with prices for branded lead at RMB 15,950-16,000/mt and lead from Gejiu quoted at RMB 15,800/mt. Smelters were actively selling goods but downstream demand was still weak. Wait-and-see sentiment dominated spot markets with fewer transactions made compared with the previous trading day.