SMM Daily Review - 2012/7/10 Lead Market

SHANGHAI, Jul. 11 (SMM) – On Tuesday, SHFE lead prices opened RMB 60/mt higher at RMB 14,900/mt under the influence of LME lead prices overnight. Later, SHFE lead prices moved within the RMB 14,890-14,920/mt and fluctuated down at the tail of trading along with domestic stocks to finally close at RMB 14,875/mt, up RMB 35/mt, with support at the 20-day moving average and resistance at the 30-day moving average. Trading volumes were down 118 lots to 104 lots, and positions were up 14 lots to 2,150 lots.

Quotations for Chengyuan and Nanfang were between RMB 15,020-15,030/mt, with spot premiums of RMB 100-110/mt over the most active SHFE lead price. Supply from Nanfang fell short in the market, boosting buying interest. Mengzi and Hanjiang were mainly quoted at RMB 14,950/mt. Quotations for Shenqian and brands from Gejiu region were around RMB 14,930/mt. Smelters were less reluctant to move goods and traders continued holding prices firm. Downstream buyers were not willing to buy noting prices were relatively high, leaving limited transactions made.