SMM Daily Review - 2012/7/25 Lead Market

SHANGHAI, Jul. 26 (SMM) – Since the possibility for Greece to exit the euro zone is rising and since Moody’s changed the outlook on EFSF’s rating to negative, SHFE lead prices moved weakly between RMB 14,760-14,790/mt after opening at RMB 14,815/mt July 25. In the afternoon, SHFE lead prices continued to fall influenced by the LME lead prices and the bearishness in the market, to close at RMB 14,705/mt, down RMB 175/mt. Trading volumes were down 80 lots to 272 lots, while positions increased 120 lots to 2,738 lots.

SHFE lead prices rallied after dipping low July 25. In China’s spot lead market, Nanfang and Shuikoushan were quoted between RMB 14,950-14,960/mt, with spot premiums over the most active SHFE lead price expanding from RMB 100 to RMB 160/mt. Quotations for Yubei were at RMB 14,900/mt, with premiums over the SHFE 1209 lead contract price at RMB 90. Shenqian and Mengzi were quoted at RMB 14,930/mt, and Tianma was quoted at RMB 14,850/mt. Lead prices kept falling, leaving most investors bearish to market outlook. Trading was still quiet. In the afternoon, spot lead prices were down RMB 20/mt influenced by the falling SHFE lead prices, but market showed no strong response.