SHANGHAI, Jun. 8 (SMM) – Although LME lead prices fell 1.47% overnight, SHFE 1306 lead contract price was relatively resilient and started slightly lower at RMB 14,015/mt no Friday to move around RMB 14,000-14,040/mt. Prices finally closed at RMB 14,045/mt, down RMB 20/mt from a day earlier. Most investors left the market prior to the Chinese Dragon Boat Festival. Trading volumes for the most active SHFE lead contract fell 48 lots to 56 lots, and positions were down 16 lots to 1,818 lots.
The LME three-month lead contact was USD 2,193.4/mt as of 15:00 June 7, with Shanghai/LME lead price ratio at 6.4. The SHFE will be closed for the first three days next week, with increase in lead prices slowing, SHFE lead prices are expected to hover around RMB 14,000/mt next week.
In China’s spot lead markets, bullish cargo holders held prices firm before the Chinese Dragon Boat Festival. Downstream buyers had already completed replenishments, leaving selling interest low and transactions limited. Tongguan was quoted at RMB 14,000/mt, flat with the most active SHFE lead contract price. Quotes for Hanjiang and Dongling were around RMB 13,970/mt, but no deals were made. Lead prices in Henan were reported at RMB 13,850-13,900/mt, RMB 25/mt lower than the previous trading day. In the afternoon, both sellers and buyers left the market for the upcoming holiday.