SMM Daily Review - 2012/5/31 Lead Market

SHANGHAI, Jun. 1 (SMM) – SHFE lead prices gapped lower at RMB 15,000/mt Thursday influenced by the climb of the US dollar to the 83 mark overnight, and moved weakly between RMB 15,000-15,040/mt. In the afternoon, SHFE lead prices edged up to move between RMB 15,040-15,090/mt along with the rising domestic stock markets, and ended down RMB 85/mt to RMB 15,045/mt. Trading volumes increased by 140 lots to 248 lots, while positions were up 122 lots to 2,056 lots.

In China’s domestic spot market, quotations for Chihong Zn & Ge and Nanfang were between RMB 15,150-15,170/mt, with premiums of RMB 120-150/mt over the most active SHFE lead contract price. Dongling was quoted at RMB 15,100/mt, and Hengchang was quoted at RMB 15,000/mt. Downstream buyers purchased in limited amounts, and dealers maintained normal sales with pessimism to market outlook. Transactions were flat compared with the previous trading day.