SHANGHAI, Jun. 11 (SMM) – SHFE lead prices opened at RMB 15,055/mt Friday and fluctuated around the opening price. China’s interest rate cut failed to boost market confidence, and domestic stocks fell below 2,300 points, dragging SHFE lead prices below the RMB 15,000/mt. In the afternoon, SHFE lead prices remained weak and finally closed at 14,995/mt, down RMB 75/mt. Trading volumes were up 60 lots to 136 lots, and positions were up 26 lots to 2,168 lots.
In China’s spot lead market, smelters were not willing to move goods due to the low prices close to cost lines. Nanfang and Shuikoushan were quoted between RMB 15,100-15,120/mt, with spot premiums of RMB 100/mt against SHFE lead prices. Quotation from Mengzi and Shenqian were between RMB 15,050-15,080/mt, with premiums of RMB 50/mt against SHFE lead prices. Enterprises downstream were only willing to purchase at lower prices due to the remaining concerns over the European debt issues, leaving transactions sparse. In the afternoon, the moat active SHFE lead prices fell below RMB 15,000/mt, dragging down spot prices, Nanfang and Shuikoushan were quoted at RMB 15,100/mt, while Tongguan was quoted at RMB 15,050/mt. Offers of Hanjiang and brands from Gejiu region were at RMB 15,000/mt, and Shenqian was quoted at RMB 14,970/mt. Transactions deteriorated further as market confidence was depressed by the falling prices.