SMM Lead Market Morning Review (2013-1-30)

SHANGHAI, Jan. 30 (SMM) – Although the US Conference Board consumer confidence index for January and the University of Michigan consumer confidence index missed forecasts, the negative news did not hurt investor appetite. Besides, the US equities rebounded after falling initially and non-US currencies climbed, with the US dollar index down to 79.5. As such, LME lead prices opened at USD 2,378/mt and rose above USD 2,400/mt to end at USD 2,407/mt overnight. Trading volumes increased 1,047 lots to 5,597 lots, and positions increased 2,346 lots to around 138,000 lots. LME lead inventories dropped 1,075 mt to 292,650 mt.

The US dollar index closed at 79.57, and COMEX silver for March delivery closed at USD 31.18/oz, up USD 0.404/oz or 1.31%.

On January 30, the most active SHFE lead contract price should move between RMB 15,250-15,320/mt, and spot lead prices in China are expected at RMB 14,700-14,870/mt.