SMM Lead Market Daily Review (2013-1-23)

SHANGHAI, Jan. 24 (SMM) – The SHFE 1303 lead contract price started higher at RMB 15,250/mt on January 23 and fell due to the decline of Shanghai Composite Index. At midday, the prices showed larger losses to hit as low as RMB 15,150/mt despite a USD 10/mt increase in LME lead prices around 12:30 a.m. At the tail of trading, however, domestic A-shares regained the earlier losses, driving SHFE lead prices to end at RMB 15,250/mt, showing stronger buying support. Trading volumes fell 216 lots to 184 lots, while positions were down 58 lots to 2,228 lots.

Spot lead prices in China remained little changed. Quotations for Chihong Zn & Ge were firm at RMB 14,800/mt due to limited supply, with spot discounts of RMB 410/mt over the most active SHFE lead contract price, but transactions were rare given high prices. Prices for Hanjiang were offered at RMB 14,670/mt, and quotation for Shenqian remained unchanged at RMB 14,660/mt. The weakening SHFE lead prices and depressed demand in spot lead market left transactions sparse. In the afternoon, inquiries were less reported despite the rise in SHFE lead prices, so trading remained thin.