SMM Daily Review - 2012/2/14 Lead Market

SHANGHAI, Feb 15 (SMM) – On Tuesday, the most active SHFE lead contract price opened below RMB 16,000/mt and fell slightly due to the downgrade of several eurozone countries and Spanish banks. In midday, SHFE lead prices were boosted by the increasing domestic stocks and rose to moving averages, but met resistance later due to increase in the US dollar index and falling LME lead prices. Prices finally closed at RMB 15,820/mt, down RMB 195/mt or 1.22%. Trading volumes increased by 64 lots to 240 lots, positions decreased by 176 lots to 1,384 lots.

In China’s domestic spot markets, quotations for Chihong Zn & Ge were between RMB 15,820-15,850/mt, while lead of Chengyuan was quoted around RMB 15,800/mt, with discounts against the most active SHFE lead contract price at RMB 120-180/mt. Others brands were quoted between RMB 15,700-15,740/mt. In the afternoon, transactions in spot markets were sparse with quotations remaining basically unchanged from morning. Buying interest among downstream enterprises did not improve, and transactions remained the same with the previous trading day.