SMM Lead Market Daily Review (2013-3-26)

SHANGHAI, Mar. 27 (SMM) – SHFE lead prices started lower at RMB 14,545/mt on Tuesday given market concerns over the European economy, and moved down due to falling holdings. However, prices found some support from the LME lead prices which were resistant to declines on one hand and refused to rise on the other and a stalemate between buyers and suppliers in China’s spot lead market, and mainly moved between RMB 14,530-14,560/mt before closing at RMB 14,570/mt, RMB 15/mt lower than the previous trading day. Traded volumes were up 88 lots to 174 lots, and positions were down 88 lots to 2,018 lots.

Spot lead prices in China remained little changed from the previous trading day. Chihong Zn & Ge was quoted at RMB 14,460/mt, with spot discounts of RMB 80/mt over the most active SHFE lead contract price at RMB 80/mt. Tongguan was quoted at RMB 14,420/mt, while Jinli was quoted at RMB 14,430/mt. Downstream buyers still purchased as needed due to poor orders, and cargo holders sold goods moderately given uncertain outlook, with transactions limited.