SMM Lead Market Daily Review (2013-1-16)

SHANGHAI, Jan. 17 (SMM) – The SHFE 1303 lead contract price opened RMB 70/mt higher at RMB 15,205/mt on January 16. Although LME lead prices and SHFE copper rallied in the morning, SHFE lead prices remained weak between RMB 15,150-15,170/mt, and finally closed at RMB 15,170/mt, up RMB 40/mt. Trading volumes were down 146 lots to 124 lots, and positions fell 8 lots to 2,182 lots.

With SHFE lead prices stabilizing, cargo holders were optimistic to spot lead market and were unwilling to move goods at low prices, leaving quotations rare in the market on January 16. Chihong Zn & Ge was quoted at RMB 14,750-14,760/mt, with spot discounts of RMB 430/mt over the 1303 SHFE lead contract price. Quotations for Dongling and Hanjiang were mainly at RMB 14,660/mt. Downstream buyers mainly made inquiries with transactions limited.