SMM Lead Market Daily Review (2013-1-18)

SHANGHAI, Jan. 21 (SMM) –The SHFE 1303 lead contract price gapped nearly RMB 100/mt higher at RMB 15,195/mt on January 18 influenced by positive economic data in the US overnight. Later, as China’s 4Q GDP growth and industrial production data were reported above expectations and previous figures, SHFE lead prices moved between RMB 15,160-15,190/mt before closing at RMB 15,190/mt, up RMB 90/mt. Trading volumes were down 46 lots to 70 lots, and positions increased 30 lots to 2,204 lots.

In China’s spot lead market, lead prices only moved up slightly on Friday despite positive economic data as buying interest downstream remained low ahead of weekend. Chihong Zn & Ge was quoted at around RMB 14,770/mt, with spot discounts of RMB 400/mt over the 1303 SHFE lead contract price. Quotations for Dongling, Hanjiang, and Shenqian were mainly at RMB 14,660-14,680/mt. Cargo holders still moved goods actively but transactions fell from the previous trading day.