[Pb] SMM Morning Review - 2009/8/27 Lead Market

SHANGHAI, Aug. 27 (SMM) -- On Wednesday, LME lead prices have risen to a record high of USD 2,129/mt since August 2008, with a growth rate of 14% during three consecutive trading days. However, LME lead prices closed at USD 2,055/mt finally in view of strengthened US dollar and dropping stock markets. Positive impact from favorable durable goods orders and new home sales from the US was limited, but environmental protection inspection at domestic lead smelters still exerted positive impact on lead market, causing LME lead prices to challenge the resistance level of USD 2,160/mt. August 31st is British holiday, which will generate the profit-taking sentiment of market players.

    The US stock closed up on Wednesday due a cautiousness of investors with regard to recent lead price hike. In currency market, the US dollar strengthened, since China will further restrict industrial overcapacity, which generated market concerns on global economic recovery and offset the positive impact from favorable economic data in the US. COMEX Gold closed at USD 945.8/oz, down USD 0.2/oz and silver prices closed at USD 14.255/oz, up Cents 5.5/oz. NYMEX crude oil futures prices closed at USD 71.43./barrel.

    Lead prices are expected to move around RMB 14,800 in domestic spot market.

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