SMM Lead Market Daily Review (2013-2-1)

SHANGHAI, Feb. 4 (SMM) – On Friday, the 1304 SHFE lead contract price fell after opening lower at RMB 15,500/mt due to the worse-than-expected China official manufacturing PMI for January. Prices dropped to RMB 15,420-15,450/mt at midday but rallied later as the Shanghai Composite Index rose above 2,400 to finally close at RMB 15,505/mt. Trading volumes fell 142 lots to 162 lots, while positions were up 34 lots to 2,306 lots.

SHFE lead prices fell after opening lower, driving spot lead prices in China to edge down. Chihong Zn & Ge and Chengyuan were quoted at RMB 14,950-14,960/mt, but traded prices were between RMB 14,930-14,940/mt. Spot discounts over the 1304 SHFE lead contract price was RMB 500/mt. Quotation for Mengzi was RMB 14,860/mt, while those for Dongling and Hanjiang were mainly around RMB 14,830/mt. Some downstream enterprises will start holiday on February 2, and thus purchased goods modestly when spot prices fell.