SMM Lead Market Daily Review (2013-6-27)

SHANGHAI, Jun. 28 (SMM) – The eased liquidity crunch in China alleviated investors’ concerns over Chinese economy, so Shanghai Composite Index stopped falling to hover around 1,950. Coupled with LME lead prices rising to head towards USD 2,060/mt, SHFE 1309 lead contract price opened at RMB 13,930/mt and moved narrowly around RMB 13,900/mt on Thursday, but climbed in the afternoon given buying support and finally closed up RMB 70/mt at RMB 13,940/mt, standing above the 5-day moving average. Trading volumes for the most active contract increased 26 lots to 148 lots, and positions increased 32 lots to 1,902 lots. Settlement price was slightly lower at RMB 13,922/mt. SHFE lead prices are expected to remain weak in the medium to long term due to sluggish demand and depressed economy.