SMM Morning Review - 2010/5/12 Lead Market

SHANGHAI, May 12 (SMM) -- Base metals market remained under pressure along with revived market concerns over debt issues in the Europe and China's strong inflationary data in April, up to 2.8%. On Tuesday, LME lead prices fell below USD 2,000/mt, and later rebounding euro helped erase some losses, rallying to USD 2,050/mt. SMM believes LME lead prices will continue to fluctuate weakly on Wednesday.

In neighboring markets, a 750-billion-euro rescue package failed to help sustain market confidence over the euro-zone region, and concerns towards solvency emerged. As a result, the euro slid against the dollar after a 3-day rise. The US dollar index closed at 84.695. Gold futures for June delivery ended up USD 19.50 to USD 1,220.30 per ounce; Silver futures for July delivery finished 74.2 cents higher at USD 19.294 per ounce.

Domestic lead market is expected to deal between RMB 15,150-15,300/mt on Wednesday.

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

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