SMM Lead Market Daily Review (2013-3-8)

SHANGHAI, Mar. 11 (SMM) –As LME lead prices increased 1% overnight, SHFE 1305 lead contract price opened higher at RMB 14,820/mt on Friday. In the afternoon, prices gained buying support at RMB 14,800/mt and moved up to RMB 14,800-14,825/mt, but the decline in domestic stock markets limited increase in SHFE lead prices, with prices ending at RMB 14,830/mt, up RMB 55/mt. Trading volumes fell 206 lots to 144 lots, while positions were up 26 lots to 2,263 lots.

Spot lead prices in China edged up along with SHFE lead prices March 8. Quotations for Chihong Zn & Ge were firm due to tight supplies, and a few goods were traded at RMB 14,610/mt, with spot discounts over the most active SHFE lead contract price remaining at RMB 200/mt. Nanfang was quoted at RMB 14,570-14,580/mt, while Hanjiang was quoted at RMB 14,530/mt. Downstream buyers purchased at low prices, while smelters were reluctant to move goods due to low prices. Some traders replenished stocks modestly, believing lead prices were already low.