SHANGHAI, Dec. 1 (SMM) – The most active SHFE lead contract plunged to RMB 15,280/mt after its opening but rebounded to RMB 15,350/mt on Wednesday. In the afternoon, as the Shanghai Composite Index dropped to 2,330, SHFE lead prices again dipped to the intraday low RMB 15,280/mt, and failed to rally at the tail of trading, with prices finally closing at RMB 15,315/mt, down RMB 150/mt. Market confidence was depressed by the drop in China's stock market, with longs staying away from the market. Trading volumes decreased by 46 lots to 388 lots, and positions increased by 16 lots to 2,426 lots. SHFE lead prices have fallen below the 60-day moving average.
In domestic spot market, quotations for domestic lead brands such as Nanfang and Chengyuan were around RMB 15,380/mt early on Wednesday, with premiums against the most active SHFE lead contract prices of RMB 30/mt. Quotations for Baiyin were between RMB 15,340-15,350/mt. SHFE lead prices fell further by RMB 50/mt in the afternoon, followed by falling spot prices. Thus, Chihong Zn & Ge cut its prices to RMB 15,350/mt, and quotations for Chengyuan and Nanfang hovered at RMB 15,300/mt. The brands Baiyin and Shuangyan were quoted RMB 15,280/mt, with discounts against the most active SHFE lead contract prices of negative RMB 30/mt. In the afternoon, downstream buyers were depressed by the falling stocks, and purchases were rarely reported due to financial pressure on the last day of November. Smelters mainly moved goods for long-term contracts, but supply was still sufficient as traders still held goods at hand.