SMM Lead Market Daily Review (2013-3-5)

SHANGHAI, Mar. 6 (SMM) – The SHFE 1305 lead contract price opened at RMB 15,000/mt on March 5 with resistance at the 5-day moving average and moved narrowly between RMB 14,900-14,930/mt due to strong wait-and-see sentiment during the NPC and CPPCC sessions. Despite the 2.33% rebound in domestic stock markets, weak demand in spot lead market limited increase in SHFE lead with prices ending at RMB 14,900/mt, up RMB 15/mt. Trading volumes fell 14 lots to 196 lots, while positions were up 52 lots to 2,078 lots.

Spot lead prices in China also remained low. Quotations for Chihong Zn & Ge were at RMB 14,680/mt, with spot discounts over the most active SHFE lead contract price expanding to RMB 250/mt after the SHFE 1305 lead contract became the most active one. Prices for Nanfang were offered at RMB 14,650/mt. Shenqian and Hanjiang were quoted at RMB 14,610-14,620/m. Cargo holders supplied goods normally and some downstream buyers purchased at low prices, but transactions were fewer than the previous trading day.