SMM Daily Review - 2012/3/6 Lead Market

SHANGHAI, Mar. 7 (SMM) – On Tuesday, SHFE lead prices fell below RMB 16,000/mt after opening down and then moved around RMB 15,950/mt due to the falling LME lead prices. In the afternoon, SHFE lead prices dipped a low of RMB 15,910/mt level as the US dollar index increased and finally closed at RMB 15,900/mt, down RMB 255/mt. Traded volumes increased by 216 lots to 290 lots and positions were down 146 lots to 1,562 lots.

In China’s domestic spot markets, quotation for well-known brands such as Chihong Zn & Ge, Chengyuan and Nanfang were between RMB 15,850-15,870/mt, with discounts against the most active SHFE lead contract price at RMB 100/mt. Other brands such as Shenqian from Fujian and lead from Gejiu region were quoted at RMB 15,800/mt, but with scarce deals done. Most smelters only waited on the sidelines as financial pressures were eased early in the month and market outlook remained unclear. Traders were actively buying goods, leaving supply relatively tight, but transactions did not improve significantly.