SMM Daily Review - 2012/7/11 Lead Market

SHANGHAI, Jul. 12 (SMM) – As LME lead prices edged down overnight, SHFE lead prices opened RMB 60/mt lower at RMB 14,815/mt Wednesday. At midday, metals started falling but SHFE lead prices showed certain resilience. Market remained cautious before release of China’s 2Q GDP on Friday, with SHFE lead prices moving within the RMB 14,820-14,860/mt range and closing at RMB 14,870/mt, with resistance at the 5-day moving average. Trading volumes were down 8 lots to 96 lots, and positions were up 26 lots to 2,176 lots.

Spot lead prices were still firm. Quotations for Shuikoushan and Nanfang were mainly at RMB 15,030/mt, with spot premiums over the most active SHFE lead price narrowing to RMB 70/mt. Mengzi and Hanjiang were mainly quoted at RMB 14,950/mt. Quotations for Shenqian were around RMB 14,930/mt, while offers for brands from Gejiu region were mainly at RMB 14,890/mt. Smelters reported normal sales and traders still held prices firm. Downstream consumption remained soft.