SHAGNHAI, Aug. 17 (SMM) -- On Tuesday, SHFE 1110 lead contract prices opened slightly higher at RMB 16,835/mt, and then plummeted to RMB 16,580/mt on speculations over interest rates hike, fluctuating between RMB 16,540-16,600/mt. In the afternoon, SHFE inched down along with LME lead prices, and finally closed at RMB 16,450/mt, down RMB 280/mt, or down 1.67%. Trading volumes increased slightly by 272 lots to 1,320 lots, and total positions increased by 182 lots to 4,914 lots.
In domestic spot markets, well-known brands such as Nanfang and Chihong Zn & Ge were generally quoted based on SHFE lead prices in the morning session, with discounts of negative RMB 400/mt against SHFE 1110 lead contract prices, with traded prices concentrating between RMB 16,200-16,250/mt. Other brands such as Jinguan were quoted at RMB 16,100/mt. As SHFE lead prices fell further in the afternoon, offers for Chihong Zn & Ge and Nanfang were down to RMB 16,100-16,150/mt, while other brands were quoted between RMB 16,050-16,080/mt. Market players especially downstream buyers were cautious due to fluctuating lead prices, who were generally enquiring. Smelters reduced goods supply due to optimistic speculations, causing spot lead supply available in the market to fall. But smelters will increase goods supply to generate cash once lead prices fall below RMB 16,000/mt.
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