SHANGHAI, Jul. 4 (SMM) – SHFE 1309 lead contract price opened at RMB 13,955/mt on June 3 and fell RMB 30/mt due to declining SHFE copper prices and the Shanghai Composite Index falling below 2,000. In the afternoon, price for the most active contract regained some losses boosted by buying support and finally closed at RMB 13,965/mt. Trading volumes for the contract for September delivery fell 34 lots to 64 lots, while holdings remained unchanged at 1,970 lots. SHFE lead prices are expected to continue moving narrowly below RMB 14,000/mt.
Spot lead prices in China were little changed, with Nanfang and Shuikoushan quoted at RMB 13,780/mt and Hanjiang offered at RMB 13,750/mt. Warrants for Chihong Zn & Ge and Wanyang were offered at RMB 13,800/mt initially, with premiums of RMB 20/mt over the SHFE 1307 lead contract price, but prices fell to RMB 13,760/mt later with SHFE lead slipping RMB 40/mt. Downstream consumption was modest, and smelters moved goods normally, but traders unwilling to enter the market. Lead prices in Nanchu were generally RMB 20-30/mt lower than Shanghai, but trading was still light.