SMM Lead Market Morning Review (2013-3-1)

SHANGHAI, Mar. 1 (SMM) – Base metals fell across board overnight. LME lead prices presented a weak trend after opening at USD 2,317/mt during Asian trading hours. Later, Germany’s unemployment rate was reported below expectation in February. In the US, its 4Q GDP was also disappointing, despite a decline in initial jobless claims and the improving Chicago PMI. The US dollar rallied to 81.95, driving LME lead down to USD 2,290/mt and to end at USD 2,278/mt. Trading volumes were rose to 6,167 lots, and positions were down 1,037 lots to around 123,000 lots. LME lead inventories fell 675 lots to 287,275 lots.

The US dollar index closed at 81.95, while COMEX silver for May delivery closed at USD 28.43/oz, down USD 0.553/oz or 1.61%.

On March 1, SHFE 1304 lead contract price will likely move between RMB 14,900-15,050/mt, with spot lead prices in China expected to remain at RMB 14,650-14,850/mt.