SMM Lead Market Daily Review (2012-10-17)

SHANGHAI, Oct. 18 (SMM) – SHFE lead prices opened at RMB 15,700/mt and followed a weak trend as influence from positive economic data in the US was limited. Although LME lead and Chinese stocks rose slightly, the weak demand forced SHFE lead prices to fluctuate down to a low of RMB 15,630/mt, with prices finally closing at RMB 15,655/mt, down RMB 60/mt. Trading volumes fell 84 lots to 92 lots, and positions remained unchanged.

Traders in China’s spot lead market lowered prices due to weak demand. Well-known brands including Nanfang and Chihong Zn & Ge were quoted between RMB 15,500-15,510/mt, with spot discounts overt the SHFE 1212 lead contract price at RMB 150/mt. Other brands, such as Mengzi and Dongling were offered at RMB 15,430-15,440/mt. Quotations for Shenqian were at RMB 15,360/mt. Continuous declines in lead prices prompted some cargo holders to limit sales, while downstream buyers were unwilling to purchase despite lower prices, leaving trading modest.