SMM Lead Market Daily Review (2013-4-12)

SHANGHAI, Apr. 15 (SMM) – SHFE 1306 lead contract price started at RMB 14,450/mt on Friday and moved between RMB 14,430-14,450/mt due to weak demand. Later, market concerns over tighter liquidity was rekindled by rumors that the schedule for the relaunch of IPO may be decided when the new chairman of China Securities Regulatory Commission attends the press conference this afternoon. In response, the Shanghai Composite Index plunged again, driving SHFE lead to fall to RMB 14,380/mt before closing at RMB 14,410/mt, down RMB 30/mt from Thursday. Trading volumes fell 18 lots to 76 lots, and holdings increased 20 lots to 2,162 lots.

Quotations for Chihong Zn & Ge in China’s spot market were around RMB 14,240/mt, with spot discounts of RMB 200/mt over the most active SHFE lead price. Nanfang was quoted at RMB 14,230/mt, while YT lead was offered at RMB 14,180/mt. Goods of Henan Jinli were quoted at RMB 14,230/mt. Some downstream buyers replenished goods modest ahead of the weekend, while cargo holders were not willing to sell goods at low prices. Transactions improved from a day earlier.