SMM Brief on SHFE Lead Futures (2013-6-24)

SHANGHAI, Jun. 24 (SMM) – SHFE 1309 lead contract price opened RMB 25/mt lower at RMB 13,935/mt on Monday. The A-shares fell below 2,000 with a decline of almost 5% due to reports about tightening liquidity, driving base metals to fall. However, as only a few investors entered the lead market, and SHFE lead prices were only RMB 20/mt higher than a yearly low, SHFE lead prices were relatively resilient than other metals, and moved at RMB 13,900-13,940/mt, to finally close at RMB 13,915/mt. Trading volumes increased 128 lots to 306 lots, and positions were up 124 lots to 1,784 lots. Shorts increased positions actively. Given the revival of European debt crisis, the strong US dollar and the tight liquidity in China, lead prices are expected to remain weak.