Ferrous Market Sees Crazy Capital Flight, and SHFE Lead Hit 6-Week Low

SHANGHAI, Oct. 30 (SMM) －Ferrous metals mostly opened lower on October 30 and moved at lows for the whole day, closing with losses across the board.

DCE coking coal finished the day slightly lower. SHFE rebar and hot-rolled coil dropped over 1%. DCE iron ore plunged over 3%, and DCE coking coal dropped nearly 3%.

SHFE base metals opened the day lower, and closed with declines across the board. SHFE lead fell nearly 3% to hit a 6-week low, leading losers of base metals.

Downstream buyers would not buy primary lead under small orders given weak fundamentals. So, sales under small orders slowed at primary lead smelters and traders, and caused selloffs. This further weighed down lead prices, said Wang Lan, a senior lead analyst from SMM.

About 1.06 billion yuan ran out of the ferrous metals market today. Iron ore saw 470 million yuan fleeing. Some 450 million yuan ran out of the SHFE copper market, while SHFE zinc saw 330 million yuan capital inflows, outshining base metals.