SMM Lead Market Daily Review (2013-2-20)

SHANGHAI, Feb. 21 (SMM) – SHFE lead prices continued to fall after opening at RMB 15,300/mt on February 20. Trading was weak with investors uninterested in entering the market and SHFE lead prices finally closed RMB 15/mt lower at RMB 15,275/mt. Trading volumes dropped 10 lots to 164 lots, while positions were up 46 lots to 2,586 lots.

Downstream demand in spot lead market was still weak, but spot lead prices in China were resilient to declines as cargo holders with full funding held quotations firm. Chihong Zn & Ge was quoted at RMB 14,920-14,930/mt with spot discounts over the most active SHFE lead contract price falling to RMB 350/mt. Quotations for Dongling and Hanjiang were RMB 14,830-14,840/mt, while those for Shenqian were at RMB 14,820/mt. Trading was still modest.