SMM Lead Market Daily Review (2012/10/10)

SHANGHAI, Oct. 11 (SMM) – On Wednesday, SHFE lead prices opened RMB 100/mt lower at RMB 15,905/mt due to the declines in the US equities and LME lead prices. Trading was light with most investors leaving the market. Despite the slight rally in Chinese stock markets, SHFE lead prices follow a weak track between RMB 15,850-15,900/mt and ended the day at RMB 15,890/mt, down RMB 130/mt. Trading volumes increased 44 lots to 158 lots, and positions were down 48 lots to 1,224 lots.

Spot lead prices in China’s spot lead market extended their declines. Cargo holders were forced to lower prices due to weak demand. Well-known brands, including Chihong Zn & Ge and Nanfang, were mainly quoted at RMB 15,610-15,620/mt, with spot discounts over the most active SHFE lead contract price at RMB 250/mt. Shenqian was quoted at RMB 15,560/mt, while quotations for other brands were rarely reported. Some downstream enterprises purchased at lows, leaving trading improved from Tuesday.