SMM Lead Market Daily Review (2013-2-5)

SHANGHAI, Feb. 6 (SMM) – As LME lead prices closed lower overnight due to the political instability in the eurozone, the 1304 SHFE lead contract price gapped RMB 100/mt lower at RMB 15,470/mt on Tuesday. Combined with the quiet trading ahead of the Chinese New Year holiday, SHFE lead prices presented a weak trend between RMB 15,440-15,470/mt despite the rising Shanghai Composite Index to finally close at RMB 15,450/mt, down RMB 85/mt. Trading volumes fell 118 lots to 218 lots, while positions were up 14 lots to 2,432 lots.

In China’s spot lead market, most investors were on the sidelines and quotations from cargo holders were also few but still held firm. Chihong Zn & Ge was reportedly traded at RMB 14,950/mt, with spot discounts over the most active SHFE lead contract price at RMB 500/mt. Quotations for Hanjiang were around RMB 14,920/mt and those for Shenqian remained at RMB 14,8700/mt. Trading was thin ahead of the holiday.