SMM Morning Review - 2010/2/25 Lead Market

SHANGHAI, Feb. 25 (SMM) -- On February 24th, LME lead prices closed at USD 2,220/mt, with slight growth of USD 4/mt. LME prices once declined by around USD 40/mt after the release of US new home sales figure, but the decline trend was restricted due to the weak performance of US dollar.

New home sale figure in January has declined by 11.2%, or 309,000 sets annually on current monthly decline figure, setting a record low since 1963. Federal Reserve Chairman Ben Bernanke announced on the statement at U.S. House Financial Services Committee on February 24th that the US Federal Reserve may continue to keep interest rate at extremely low level for a long time given the sluggish employment situation as well as relatively low inflation pressure. However, he also pointed out that the US Federal Reserve may withdraw these incentive policies at an appropriate time. He also told that the US Federal Reserve will begin to tighten supply of money in the market at a certain time, and the specific implementation of the plan shall depend on economic and financial situation. Bernanke's address will weigh on US dollar, and US stock prices continued to climb and metal prices rebounded as a result.

It is expected that LME lead prices will rise slightly.

To contact the writer on this report: seasonwei@smm.cn

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