SMM Lead Market Daily Review (2013-3-14)

SHANGHAI, Mar. 15 (SMM) – SHFE 1305 lead contract price opened lower at RMB 14,630/mt along with other base metals on Thursday, despite the increase in LME lead prices overnight. Prices then found buying support and climbed to close at RMB 14,730/mt, down RMB 20/mt. Trading volumes increased 26 lots to 136 lots, and positions were down 20 lots to 2,314 lots.

Chihong Zn & Ge was mainly quoted at RMB 14,600/mt, with spot discounts over the most active SHFE lead contract price at RMB 100/mt. Prices for Nanfang were offered at RMB 14,560/mt, while Shuangyan was quoted at RMB 14,480/mt. The continuous declines in lead prices and weak demand intensified market concerns. As such, downstream buyers still purchased on an as-needed basis, and smelters were unwilling to move goods at low prices, leaving a stalemate between suppliers and buyers.