SMM Daily Review - 2012/3/9 Lead Market

SHANGHAI, Mar. 12 (SMM) – On Friday, SHFE lead prices opened at RMB 15,900/mt and fluctuated up due to the increase in LME lead prices. In the morning, as China’s February CPI growth was 3.2% according to National Bureau of Statistics, within expectations, SHFE lead prices were promoted and continued to rise. SHFE lead prices finally closed at the intraday high of RMB 15,970/mt, up RMB 190/mt, or 1.2%. Traded volumes decreased by 110 lots to 92 lots and positions were down 8 lots to 1,298 lots.

In China’s domestic spot markets, quotation for well-known brands such as Chihong Zn & Ge, Nanfang were around RMB 15,850/mt, with discounts over the most active SHFE lead contract price at RMB 50/mt. Yubei lead was quoted between RMB 15,780-15,830/mt, and quotations for Shenqian were at RMB 15,700/mt. In the afternoon, spot lead was quoted higher along with the increasing SHFE lead prices, with quotations for Chihong Zn & Ge up to RMB 15,890/mt, and Yubei up to RMB 15,870/mt. Traded prices changed little, and a few transactions for lead from Gejiu region were made at RMB 15,730/mt. With lead prices stabilizing, smelters sold goods in limited amounts, and downstream buyers purchased moderately with bullish outlook. Transactions remained flat from previous trading day.