SHANGHAI, Apr. 22 (SMM) – SHFE 1306 lead contract price gapped higher on Friday at RMB 13,785/mt with resistance at the 5-day moving average. Although financial stocks pushed the Shanghai Composite Index to rise as much as 2%, profit-taking ahead of the weekend and depressed investor confidence left SHFE lead vacillating between RMB 13,800-13,900/mt, with prices finally ending at RMB 13,865/mt, up RMB 255/mt or 1.87% from a day earlier. Trading volumes were up 16 lots to 212 lots, while positions were down 42 lots to 2,122 lots.
Spot lead markets China’s were more brisk than the previous trading day and downstream buyers replenished stocks at lows. Chihong Zn & Ge was quoted at RMB 13,860/mt, with spot discounts of RMB 50/mt against the most active SHFE lead contract price. Shuangyan was quoted at RMB 13,650/mt, while Tongguan was offered at RMB 13,680/mt, with premiums of RMB 50/mt over the SHFE 1305 lead contract price. Spot trading showed limited improvement as some downstream buyers purchased directly from smelters.