SMM Lead Market Daily Review (2013-10-11)

Price Review & Forecast 09:04:21AM Oct 12, 2013 Source:SMM

SHANGHAI, Oct. 12 (SMM) – SHFE lead prices, boosted by the report on raising US debt limit for six weeks, rallied to RMB 14,180/mt after starting at RMB 14,140/mt Friday. Despite a slight decline to RMB 14,130/mt later in the day, the most active SHFE lead contract price regained the losses to close out the week at RMB 14,145/mt helped by increasing dip-buying. The prices have stood above the 5-day moving average and tended to test resistance at the 20-day moving average. Traded volumes for the most active SHFE lead contracts increased by 596 lots to 1,232 lots, and positions grew 272 lots to 8,792 lots. The growth in trading and positions, as well as stronger buying support indicated rising bullish mood in the market. 

 
In Shanghai spot lead market, goods of Chihong Zn & Ge and Nanfang were quoted at RMB 14,060-14,070/mt on October 11, with contango of RMB 80-90/mt against the most active SHFE lead contract price. Shuikoushan was offered flat with SHFE 1311 lead contract price, while Chengyuan was quoted at a premium of RMB 40/mt over SHFE 1310 lead contract price. Prices for Qinyuan and Hanjiang were RMB 14,020/mt, and Humon was traded at RMB 13,990/mt. Cargo holders moved goods aggressively, driving up supplies in spot markets, but downstream purchases did not increase along with higher prices, leaving trading poor. In the afternoon, consumption improved but traded prices fell RMB 10-20/mt from morning session.

SMM Lead Market Daily Review (2013-10-11)

Price Review & Forecast 09:04:21AM Oct 12, 2013 Source:SMM

SHANGHAI, Oct. 12 (SMM) – SHFE lead prices, boosted by the report on raising US debt limit for six weeks, rallied to RMB 14,180/mt after starting at RMB 14,140/mt Friday. Despite a slight decline to RMB 14,130/mt later in the day, the most active SHFE lead contract price regained the losses to close out the week at RMB 14,145/mt helped by increasing dip-buying. The prices have stood above the 5-day moving average and tended to test resistance at the 20-day moving average. Traded volumes for the most active SHFE lead contracts increased by 596 lots to 1,232 lots, and positions grew 272 lots to 8,792 lots. The growth in trading and positions, as well as stronger buying support indicated rising bullish mood in the market. 

 
In Shanghai spot lead market, goods of Chihong Zn & Ge and Nanfang were quoted at RMB 14,060-14,070/mt on October 11, with contango of RMB 80-90/mt against the most active SHFE lead contract price. Shuikoushan was offered flat with SHFE 1311 lead contract price, while Chengyuan was quoted at a premium of RMB 40/mt over SHFE 1310 lead contract price. Prices for Qinyuan and Hanjiang were RMB 14,020/mt, and Humon was traded at RMB 13,990/mt. Cargo holders moved goods aggressively, driving up supplies in spot markets, but downstream purchases did not increase along with higher prices, leaving trading poor. In the afternoon, consumption improved but traded prices fell RMB 10-20/mt from morning session.