SHANGHAI, Mar. 29 (SMM) – SHFE 1305 lead contract price opened lower at RMB 14,460/mt on March 28 since LME lead prices ended down overnight and since domestic stocks gapped lower. The Shanghai Composite Index fell as much as 3%, prompting investors to book profits and exit the market. Thus, SHFE 1305 lead contract price moved between RMB 14,430-14,480/mt before closing at RMB 14,430/mt, down RMB 20/mt from a day earlier. Traded volumes were up 16 lots to 248 lots, and positions fell 116 lots to 192 lots.
As this quarter came to an end and as Thursday was the last trading day for LME lead before the Easter holiday, cargo holders cut prices to sell goods in order to avoid risk caused by high inventories. Branded lead, such as Chihong Zn & Ge and Nanfang, was quoted at RMB 14,350-14,360/mt, with spot discounts over the most active SHFE lead contract price at RMB 100/mt. Tongguang was offered at RMB 14,330/mt, and Mengzi was quoted at RMB 14,300/mt. Prices for Yuguang were around RMB 14,400/mt, with premiums of RMB 10/mt over the SHFE 1304 lead contract price. Falling prices largely hurt market confidence and undermined the buying interest.