SMM Brief on SHFE Lead Futures (2013-4-9)

SHANGHAI, Apr. 9 (SMM) – SHFE 1306 lead contract price gapped higher at RMB 14,500/mt on Tuesday. China’s CPI for March was reported lower than expected and PPI held steady from February, reflecting easing inflation. Domestic stocks thus rallied to touch a high of 2,234, but failed to give a boost to SHFE lead. The contract for June delivery moved between RMB 14,420-14,470/mt with resistance at the 10-day moving average and support at the 5-day moving average, to finally close at RMB 14,480/mt, up RMB 55/mt from a day earlier. Trading volumes were down 52 lots to 88 lots, while holdings increased 58 lots to 2,124 lots.