SMM Morning Review - 2012/7/27 Lead Market

SHANGHAI, Jul. 27 (SMM) – LME lead prices opened slightly lower at USD 1,855/mt overnight and fluctuated around the level during Asian trading hours. In European trading session, the euro rallied soon after the European Central Bank's chief, Mario Draghi, vowed “to do whatever it takes to preserve the euro”. Coupled with the improved US durable goods sales and jobless claims data, the US dollar index dropped by nearly 1% below 83, and LME lead prices rose to USD 1,892/mt and closed at USD 1,876.8/mt, up USD 14.3/mt. Market should pay close attention to the German CPI and US GDP data for second quarter to be released Friday night.

The US dollar index closed at 82.8, and COMEX silver for September delivery closed at USD 27.45/oz.

SHFE lead prices may move between RMB 14,750-14,950/mt and spot lead prices should be between RMB 14,850-15,000/mt.