SMM Lead Market Daily Review (2013-4-16)

SHANGHAI, Apr. 17 (SMM) –SHFE 1306 lead contract price gapped lower at RMB 13,805/mt on Tuesday, a new low since October 2011, and rallied soon after opening but with increase limited. Prices hovered between RMB 13,990-14,080/mt to close at RMB 14,035/mt, up RMB 15/mt from a day earlier. Trading was enlivened, with traded volumes up 236 lots to 392 lots. Positions fell 24 lots to 2,132 lots.

SHFE lead prices opened lower at stabilized around RMB 14,000/mt on Tuesday. In China’s domestic spot markets, Chihong Zn & Ge was quoted at RMB 13,980/mt, with spot discounts over the most active SHFE lead contract narrowing to RMB 70/mt. Yuguang was offered at RMB 13,960/mt, with premiums of RMB 10/mt over the SHFE 1305 lead contract price, while Yubei was quoted at RMB 13,940/mt. Prices for Shenqian were offered around RMB 13,940/mt. The low prices boosted buying interest downstream, while cargo holders only sold goods modestly. Prices changed little in the afternoon, and transactions improved from the previous day.