SMM Brief on SHFE Lead Futures (2013-6-17)

SHANGHAI, Jun. 17 (SMM) – As LME lead prices closed higher last Friday, SHFE 1306 lead contract price gapped nearly RMB 80/mt higher at RMB 13,880/mt on Monday, breaking above the 20 and 30-day moving averages. Later, demand for spot lead in China remained stable and the Shanghai Composite Index hovered narrowly, combined with LME lead moving around USD 2,120/mt, SHFE lead moved between RMB 13,890-13,900/mt and finally closed at RMB 13,895/mt, up RMB 75/mt. Trading volumes for the most active SHFE lead contract fell 10 lots to 36 lots, and positions remained unchanged at 1,782 lots. Total trading volumes for SHFE lead contracts were down 468 lots to 208 lots and positions increased 20 lots to 6,112 lots. SHFE lead prices are expected to fall back down.