SHANGHAI, Jun. 27 (SMM) – SHFE 1309 lead contract price opened at RMB 13,905/mt on June 26 despite the over 2% increase in LME lead prices overnight, and moved around RMB 13,900/mt. In the afternoon, as Chinese stock markets responded mildly to the liquidity injection by the People’s Bank of China on Tuesday and continued the downtrend and LME lead prices gave back earlier gains, SHFE 1309 lead contract price fell RMB 10-20/mt to RMB 13,875-13,895/mt, and finally ended at RMB 13,870/mt, down RMB 30/mt. Trading volumes for the contract for September delivery fell 58 lots to 122 lots, and positions increased 50 lots to 1,870 lots. SHFE lead prices are expected to hover at RMB 13,850-13,950/mt given the weakness in Chinese stock markets.

 

Spot lead prices in China were little changed from the previous trading day. Chihong Zn & Ge was traded at RMB 13,790/mt, with spot discounts of RMB 100/mt against the SHFE 1309 lead contract price. Nanfang was traded at RMB 13,730/mt, with discount of RMB 10/mt against the SHFE 1307 lead contract price. Shuikoushan was traded at RMB 13,750/mt, and Mengzi was traded at RMB 13,730/mt. Most downstream buyers were facing tight cash flow and limited purchases, leaving trading quiet.