SHANGHAI, Nov. 21 (SMM) – Last Friday, SHFE 1201 lead contract prices opened nearly RMB 300/mt lower at RMB 14,900/mt due to dropping LME lead prices overnight, and surged above RMB 15,000/mt. Prices moved between RMB 15,150-15,250/mt through the day with pressure at 10-day moving average, and finally closed at RMB 15,230/mt, down RMB 165/mt. Trading volumes increased by 110 lots to 570 lots, and positions increased by 242 lots to 1,904 lots.
SHFE lead prices edged up after opening lower last Friday. Quotations for domestic well-known brands Nanfang, Chihong Zn & Ge, Yuguang and Yubei were around RMB 15,300/mt, with premiums against SHFE 1201 lead contract prices of RMB 80-100/mt. Quotations for other lead brands such as Hanjiang and Baiyin were around RMB 15,200-15,230/mt. Most smelters were not willing to move goods due to dropping lead prices. As spot premiums against SHFE 1201 lead contract prices expanded, traders were more likely to sell goods. Downstream buyers still believed domestic lead prices were higher than LME lead prices, but would not import lead due to weak demand, and purchased domestic lead ingot as needed. Transactions did not improve remarkably.