SMM Morning Review - 2012/2/21 Lead Market

SHANGHAI, Feb. 21 (SMM) – LME lead prices followed a weak trend overnight with market waiting for the result from the eurozone finance ministers’ meeting. LME lead prices opened higher at USD 2,066/mt earlier and moved around the level. During European trading hours, market players were optimistic and European equities rose after opening higher, boosting LME lead prices to touch USD 2,080/mt, an intraday high. Later, however, prices fluctuated between USD 2,050-2,070/mt as doubts still exist before the release of final decision, and finally closed up USD 39/mt at USD 2,074/mt, increasing by 1.29%. Traded volumes were down 4,892 lots to 1,829 lots and positions increased by 2,301 lots to 111,000 lots. LME lead inventories decreased by 1,975 mt to 377,825 mt.

The US dollar index closed at 79.14, down 0.29. COMEX silver closed at USD 33.58/oz, up USD 0.29/oz.

On Tuesday, SHFE lead prices are expected to move between RMB 15,600-15,900/mt with support at the 60-day moving average. Domestic spot prices should be between RMB 15,600-15,750/mt. Purchases will still be made on an as-needed basis.