SMM Morning Review - 2012/7/3 Lead Market

SHANGHAI, Jul. 3 (SMM) – LME lead prices opened at USD 1,860/mt overnight and moved narrowly. Although the Euro zone manufacturing PMI for June hit its three-year low and ISM Manufacturing Index dropped below 50 for the first time since July 2009, indicating the contraction of manufacturing sector, market was still under the influence of the favorable news from the EU summit. Thus, LME lead prices remained fluctuating and ended at USD 1,874/mt. Trading volumes were down 2,864 lots to 5,462 lots, while positions were up 980 lots to about 133,000 lots. LME lead inventories fell 575 mt to 349,725 mt.

The US dollar index ended at 81.88, and COMEX silver for September delivery closed at USD 27.5/oz, down USD 0.11/oz.

On Tuesday, SHFE lead prices are expected to move between RMB 14,730-14,900/mt, with spot lead prices between RMB 14,700-14,850/mt.