SMM Lead Market Daily Review (2013-6-4)

SHANGHAI, Jun. 5 (SMM) – The most active SHFE 1307 lead contract price opened slightly lower at RMB 14,075/mt on Tuesday, and moved around the level in the morning trading session. At midday, the increasing buying support drove prices to cross above RMB 14,100/mt and to touch a high of RMB 14,120/mt. The most active contract finally closed at RMB 14,100/mt, up RMB 10/mt. Trading volumes spiked 498 lots to 618 lots, but positions fell sharply by 282 lost to 1,822 lots.

Spot lead prices in China remained little changed from Monday. Jinsha was quoted at RMB 13,950/mt, with spot discounts of RMB 125/mt over the most active SHFE lead contract price. Hanjiang was traded at RMB 13,900-13,920/mt. Smelters were more bullish to market outlook, and held back from selling, leaving supplies tight in the market. Downstream purchases fell after the continuous increases in lead prices and since end-user demand remained sluggish.