SMM Brief on SHFE Lead Futures (2013-7-5)

SHANGHAI, Jul. 5 (SMM) – SHFE 1309 lead contract price started RMB 15/mt lower at RMB 13,905/mt on July 5, and hovered around RMB 13,900/mt in the morning trading session. Investors took profits and exited the market in the afternoon given the upcoming weekend, driving SHFE lead to dip to a low of RMB 13,840/mt, only RMB 20/mt higher than the yearly low. However, price for the most active contract stabilized at the tail of trading to finally ended at RMB 13,880/mt, down RMB 65/mt. The Shanghai Composite Index moved narrowly after standing above 2,000 on the previous trading day and closed the week at 2,007, lending little support to SHFE lead prices. Trading volumes for the most active SHFE lead contract increased 50 lots to 156 lots, while positions were up 116 lots to 2,122 lots. Settlement price was RMB 13,889/mt.