SMM Lead Market Daily Review (2013-1-24)

SHANGHAI, Jan. 25 (SMM) – The SHFE 1303 lead contract price started higher at RMB 15,275/mt on January 24 with resistance at the 20-day moving average, and fell nearly RMB 100/mt to RMB 15,190/mt. Later, as the HSBC China manufacturing PMI for December was reported up to 51.9, a 24-month high, and rising for the fifth month, decline in SHFE lead prices was arrested. However, the falls in the Shanghai Composite Index drove SHFE lead prices to fluctuate between RMB 15,200-15,220/mt and end the day at RMB 15,220/mt, down RMB 30/mt. Trading volumes increased 56 lots to 240 lots, while positions were up 20 lots to 2,248 lots.

Spot lead prices in China remained little changed from the previous trading. Quotations for Chihong Zn & Ge were at RMB 14,800/mt, with spot discounts of RMB 410/mt over the most active SHFE lead contract price. Prices for Hanjiang and Mengzi were offered at RMB 14,690/mt, and quotation for Shenqian remained at RMB 14,660/mt. Downstream purchases were still limited as buyers were cautious with orders poor.