SMM Daily Review - 2012/7/12 Lead Market

SHANGHAI, Jul. 13 (SMM) –SHFE lead prices opened slightly lower at RMB 14,850/mt Thursday and hovered around RMB 14,820/mt in the morning with market awaiting Friday's release of China's GDP for second quarter. In the afternoon, SHFE lead prices rose to RMB 14,880/mt boosted by rising Shanghai Stock Exchange Composite Index and ended the day at RMB 14,870/mt with resistance at the 5-day moving average. Trading volumes were down 30 lots to 66 lots, and positions were up 28 lots to 2,204 lots.

Spot lead prices edged down. Quotations for Nanfang were mainly at RMB 15,020/mt, with spot premiums over the most active SHFE lead price narrowing from RMB 200/mt to RMB 150/mt. Mengzi and Hanjiang were quoted at RMB 14,950/mt. In the afternoon, spot lead prices rose along with SHFE lead prices. Traders and smelters cut sales, believing the GDP released Friday may help lift the market, while downstream buying interest remained low, leaving transactions limited.