SHANGHAI, Apr. 19 (SMM) – SHFE 1306 lead contract price gapped RMB 500/mt lower at RMB 13,425/mt on Thursday influenced by the nearly 3% slump in LME lead overnight, hitting a record low. Later, as the Shanghai Composite Index fluctuated up and gold started rising, market confidence improved slightly, driving SHFE lead to close at RMB 13,610/mt, down RMB 345/mt, or 2.47%. Traded volumes were down 66 lots to 196 lots, and positions were up 36 lots to 2,164 lots.
SHFE lead prices fell as much as 2% on Thursday, and spot lead in China’s domestic markets was quoted higher than futures prices. Smelters rarely made quotations. Chihong Zn & Ge was quoted at RMB 13,570/mt, with spot premiums of RMB 50/mt over the SHFE 1305 lead contract price. Quotes for Shuikoushan and Yubei were between RMB 13,530-13,540/mt, with premiums of RMB 30/mt over the SHFE 1305 lead contract price. Downstream were more reluctant to purchase despite low prices out of fear for further declines, leaving strong wait-and-see mood in the market. Transactions were thus quiet.
