SHANGHAI, Jun. 7 (SMM) – SHFE 1306 lead contract again became the most active one as positions for SHFE 1307 lead contract price dropped rapidly on June 6. Prices for the most active contract gapped lower at RMB 14,050/mt due to decline in LME lead prices overnight and hovered around the opening prices. Later, as the LME lead prices slumped USD 20/mt, SHFE 1306 lead contract price fell RMB 40/mt to move between RMB 14,000-14,040/mt, but gained support at the 5-day moving average before ending the day at RMB 14,025/mt, down RMB 95/mt from a day earlier. Trading volumes for SHFE 1306 lead contract fell 118 lots to 104 lots, while positions were 1,834 lots.
Spot lead markets in China were dominated by wait-and-see mood. Traded price for Chihong Zn & Ge were reported at RMB 13,960-13,970/mt, with spot discounts of RMB 100/mt over the SHFE 1306 lead contract price. Prices for Dongling and Hanjiang were RMB 13,950-13,960/mt, while goods from Wanyang were traded at RMB 13,925/mt. Smelters continued to hold prices firm, while downstream buyers returned cautious with only two trading days left before the Chinese Dragon Boat Festival. Trading was quite on the whole.