SMM Lead Market Daily Review (2013-4-3)

SHANGHAI, Apr. 7 (SMM) – SHFE 1306 lead contract became the most active one on April 3, and gapped lower at RMB 14,365/mt due to the slumping LME lead prices overnight. Prices then moved between RMB 14,370-14,420/mt with resistance at the lower Bollinger band before closing at RMB 14,350/mt, down RMB 125/mt from a day earlier. Trading volumes fell 76 lots to 206 lots, and positions were up 148 lots to 2,018 lots.

Some traders in spot lead market closed on the last trading day before the Qingming Festival. Smelters were still not willing to move goods and middlemen held prices firm. Quotations for Chihong Zn & Ge, Nanfang, and Tongguan were around RMB 14,220/mt, with spot discounts of RMB 100/mt against the most active SHFE lead contract price. Downstream buyers were more reluctant to purchase to avoid risks, leaving transactions poorer than Tuesday.