SMM Daily Review - 2012/6/28 Lead Market

SHANGHAI, Jun. 29 (SMM) – SHFE 1209 lead contract became the most actively traded one Thursday with prices opening RMB 125/mt higher at RMB 14,515/mt influenced by the positive economic data in the US. SHFE 1209 lead contract price stabilized at RMB 14,440/mt in the morning and hit an intraday high of RMB 14,525/mt in the afternoon as the US dollar index edged down, to finally close at RMB 14,515/mt , up RMB 125/mt. Trading volumes increased by 70 lots and positions were up 140 lots.

Spot lead prices in China’s domestic spot markets held firm. Well-known brands including Nanfang and Chengyuan were quoted between RMB 14,620-14,630/mt, with premiums of RMB 150-160/mt against the most active SHFE lead price. Shenqian was quoted at RMB 14,550/mt. Smelters remained unwilling to move goods, downstream buyers were more willing to buy at lower prices. Transactions improved compared with the previous trading day. In the afternoon, market was cautious ahead of the EU summit, so transactions turned modest.