SMM Lead Market Morning Review (2013-2-26)

SHANGHAI, Feb. 26 (SMM) – LME lead prices held steady around USD 2,300/mt during Asian trading hours after opening at USD 2,305/mt Monday. A poll conducted before the US trading hours showed Italian central-left party was in the lead in the election, driving the euro and European equities to rise. The US equities also opened higher, causing LME lead prices to increase to USD 2,317/mt. Later, however, as supporting rates for central-left party lagged behind other parties unexpectedly, resulting in selloffs of risky currencies, and the US dollar index hit a high of 81.9. LME lead prices thus fell to close USD 12/mt lower at USD 2,295/mt. Trading volumes were down 1,232 lots to 4,944 lots, and positions fell 367 lots. LME lead inventories fell 100 mt to 287,925 mt.

The US dollar index closed at 81.86, while COMEX silver for May delivery close at USD 29.05/oz, up USD 0.527/oz or 1.85%.

On February 26, SHFE 1304 lead contract price will likely move between RMB 15,000-15,170/mt, with spot lead prices in China expected to remain at RMB 14,700-14,850/mt.