SMM Daily Review - 2012/7/4 Lead Market

SHANGHAI, Jul. 5 (SMM) –On Wednesday, SHFE 1210 lead contract price opened at around RMB 15,000/mt and fluctuated down to RMB 14,835/mt since investors were not interested in buying. In the afternoon, SHFE lead prices stopped falling influenced by domestic stocks and finally closed at RMB 14,950/mt, down RMB 20/mt from the previous trading day. Trading volumes were up 286 lots to 576 lots, and positions were up 64 lots to 1,946 lots.

Quotations in China’s spot lead markets were relatively resilient. Shuikoushan and Hanjiang were mainly quoted at RMB 15,000/mt, with spot premiums of RMB 40-50/mt over the most active SHFE lead price. Shenqian was quoted at RMB 14,930/mt. Later, SHFE lead prices fell RMB 70/mt. Cargo holders held prices firm with limited supply in the market, while downstream enterprises purchased as needed. In the afternoon, sellers’ reluctance to sell goods intensified with SHFE lead prices regained losses, quotations were rarely reported, leaving transactions modest.