SMM Brief on SHFE Lead Futures (2013-6-19)

SHANGHAI, Jun. 19 (SMM) – SHFE 1307 lead contract price started below the 30-day moving average at RMB 13,930/mt on June 19, and moved around RMB 13,950/mt. In the afternoon, investors mainly stayed out of the market, leaving transactions limited, but prices were up RMB 30/mt to RMB 13,980/mt due to short covering, and ended the day at an intraday high of RMB 13,990/mt, up RMB 40/mt from a day earlier with resistance at RMB 14,000/mt still strong. Trading volumes of SHFE 1307 lead contract fell 2 lots to 138 lots, while positions also dropped 52 lots to 1,496 lots. Positions for SHFE 1309 lead contract are approaching the most active contract. Overall, SHFE lead prices may remain relatively firm given tightening supply.