SMM Morning Review - 2012/5/21 Lead Market

SHANGHAI, May 21 (SMM) – LME lead prices fluctuated between USD 1,930-1,955/mt during Asian trading hours after opening at USD 1,937/mt last Friday. During European trading hours, the European debt concerns still dominated the market, but the Euro rallied against the US dollar ahead of the G8 summit, dragging the US dollar index to 81. Thus, LME lead prices stabilized and rose to USD 1,985/mt to finally close at USD 1,962/mt, up USD 23/mt. Trading volumes were down 2,309 lots to 6,068 lots, while positions were up 4,371 lots to around 113,000 lots. LME lead inventories fell to 357,925 mt, down 1,050 mt.

The US dollar index fell and closed at 81.1, while COMEX silver for July delivery was up USD 0.7/oz to USD 28.7/oz, an increase of 2.5%.

On Monday, SHFE lead prices should be between RMB 15,150-15,350/mt, with spot lead prices expected between RMB 15,200-157,350/mt.