SMM Morning Review - 2012/5/17 Lead Market

SHANGHAI, May 17 (SMM) – Despite the growth in both US new housing starts and industrial output value, investors were still concerned about the Greek issue, weighing on LME metal markets. Thus, LME lead prices opened lower at USD 2,007/mt overnight and fluctuated down to finally end as low as USD 1,960/mt, down USD 49/mt or 2.45%. Trading volumes were up 2,560 lots to 7,999 lots, while positions were down 3,249 lots to around 108,000 lots. LME lead inventories fell to 359,025 mt, down 75 mt.

The US dollar index closed at 81.34, and COMEX silver for July delivery was down USD 0.9/oz to USD 27.2/oz, a decline of 3.2%.

On Thursday, SHFE lead prices should be between RMB 15,350-15,550/mt, with spot lead prices expected between RMB 15,300-15,300/mt.