SMM Lead Market Morning Review (2013-2-5)

SHANGHAI, Feb. 5 (SMM) – LME lead prices opened at USD 2,468/mt on Monday and moved around the level in Asian trading session. Later, as the Spanish Prime Minister Mariano Rajoy was involved in corruption scandal, fueling investor concerns. Meanwhile the fiscal policy proposed by Italy’s Prime Minister candidate was utterly counter to the fiscal austerity adopted by its former Prime Minister, hurting European equity markets, and weighing down the Euro. As such, LME lead prices fell to USD 2,444/mt and finally closed at USD 2,451.8/mt. Trading volumes fell 1,556 lots to 3,641 lots, and positions increased 478 lots to around 136,000 lots. LME lead inventories were down 50 mt to 290,075 mt.

The US dollar index ended at 79.56, and COMEX silver for March delivery closed at USD 31.78/oz.

On February 5, the SHFE 1304 lead contract price should move between RMB 15,450-15,600/mt, with spot lead prices in China expected at RMB 14,850-15,050/mt, and trading should be quiet ahead of the holiday.