SMM Lead Market Morning Review (2013-1-21)

SHANGHAI, Jan. 21 (SMM) – LME lead prices started at USD 2,288/mt last Friday and crossed above USD 2,300/mt during Asian trading hours as China’s 4Q GDP was reported above expectations and previous figures, indicating China’s economic recovery. Later, as a three-month increase to the US debt ceiling was proposed, LME lead prices touched a high of USD 2,331/mt but then fell due to the low-than-expected Michigan consumer confidence index to close at USD 2,307.5/mt. Trading volumes for LME lead fell 972 lots to 5,232 lots, and positions were down 1,924 lots. LME lead inventories increased 600 to 296,050 mt.

The US dollar index closed at 80.03, and COMEX silver for March delivery ended higher at USD 31.84/oz.

On January 21, the most active SHFE lead contract price is expected to move between RMB 15,180-15,270/mt, and spot lead prices in China are expected at RMB 14,650-14,800/mt.