SMM Lead Market Daily Review (2012-10-24)

SHANGHAI, Oct. 25 (SMM) – SHFE lead started at RMB 15,450/mt before dropping to RMB 15,340-15,360/mt on October 24 as LME lead prices slumped overnight. SHFE lead prices fell to RMB 15,300/mt at midday due to increased selling pressures and finally ended the day at RMB 15,330/mt, up RMB 25/mt. Trading volumes were down 50 lots to 176 lots, and positions fell 42 lots to 1,190 lots.

In China’s spot lead market, most investors were reluctant to buy goods with bearish outlook, while cargo holders lowered prices to promote sales due to month end financial pressures. Well-known brands, including Chihong Zn & Ge, Yuguang, and Chengyuan, were quoted at RMB 15,200-15,300/mt, with spot discounts over the SHFE 1212 lead contract price at RMB 150/mt. Dongling and Hanjiang were offered at RMB 15,120-15,150/mt. Quotations for Shenqian and Baiyin fell to a low of RMB 15,100/mt. Trading was lighter.