SMM Lead Market Daily Review (2013-1-17)

SHANGHAI, Jan. 18 (SMM) – The SHFE 1303 lead contract price opened lower at RMB 15,130/mt on January 17 influenced by the slump in LME lead prices overnight. Prices then fell to a low of RMB 15,035/mt as investors booking profits which caused selling pressures. The contract for March delivery was finally settled at RMB 15,100/mt after hovering between RMB 15,080-15,120/mt, down RMB 70/mt. Trading volumes were down 8 lots to 116 lots, and positions fell 8 lots to 2,174 lots.

Cargo holders in China’s spot lead market remained firm. Chihong Zn & Ge was quoted at around RMB 14,740/mt, with spot discounts of RMB 360/mt over the 1303 SHFE lead contract price. Quotations for Dongling and Hanjiang were mainly at RMB 14,650/mt, while those for Shenqian were lower at RMB 14,630/mt. Some downstream buyers became more willing to purchase, believing room for decline in lead prices will be limited.