SHANGHAI, Jun. 26 (SMM) – With China further tightening control over monetary policy and Fed expected to wind down the QE, Shanghai Composite Index dipped below 1,900 on Tuesday, but narrowed the declines to 0.19% in the afternoon following the press conference about market liquidity held by major financial authorities. SHFE 1309 lead contract price opened at RMB 13,950/mt and hit a new 2013 low of RMB 13,820/mt, but regained some losses along with domestic stocks to finally close at RMB 13,900/mt, down RMB 15/mt from a day earlier. Trading volumes were down 126 lots to 180 lots, and positions increased 36 lots to 1,820 lots. Settlement price for the SHFE 1309 lead contract price was RMB 13,879/mt.
In China’s spot lead markets, buying interest was undermined due to bearishness. Chihong Zn & Ge was offered at RMB 13,790/mt, little changed from the previous trading day and with discount of RMB 110/mt over the SHFE 1309 lead contract price, but transactions were limited. Hanjiang and Nanfang were quoted at RMB 13,720/mt. Trading was quiet on the whole as buyers believe prices will fall further. Most investors stayed out of the market in the afternoon.