SHANGHAI, Feb. 27 (SMM) – On Friday, SHFE lead prices rose after opening at RMB 15,950/mt and moved around RMB 16,000/mt. In the afternoon, Pitch Ratings downgraded ratings for three Australian banks, the US dollar index rose slightly as a result, and LME lead prices hovered around RMB 2,150/mt. Thus, SHFE lead prices moved below the moving averages with resistance and dipped to RMB 15,970/mt. However, SHFE lead prices were relatively resilient to declines compared with other base metals and closed at RMB 15,990/mt, up RMB 105/mt. Trading volumes increased by 64 lots to 412 lots and positions were down 54 to 2,024 lots.
In China’s domestic spot markets, initial quotation for well-known brands such as Chihong Zn & Ge were at RMB 15,900/mt, while Nanfang and Shuikoushan were quoted at RMB 15,880-15,900/mt, with discounts against the most active SHFE lead contract price at RMB 90-100/mt. At about 10:30 a.m., quotations for several brands decreased to RMB 15,850/mt. Quotations for Shenqian lead from Fujian were between RMB 15,760-15,780/mt. Prices remained basically unchanged in the afternoon. With lead prices starting to stabilize, smelters were cautiously moving goods over bullish outlook, while downstream buyers were more actively making inquiries.