SMM Brief on SHFE Lead Futures (2013-7-10)

SHANGHAI, Jul. 10 (SMM) – On July 10, SHFE lead market did not start until 11: 00 as investors refused to enter the market given hovering prices. As China’s foreign trade data for June were reported weak, market players have been increasingly concerned about China’s foreign trade, leaving the most active SHFE lead contract starting RMB 60/mt lower at RMB 13,830/mt. In the afternoon, the Shanghai Composite Index reserved losses to stand above 2,000, up over 2%, while SHFE copper also stabilized. As a result, SHFE 1309 lead contract price moved up to end the day at RMB 13,850/mt, down RMB 40/mt from a day earlier. Trading volumes were 172 lots, up 66 lots, and positions increased 50 lots to 2,408 lots. SHFE lead price hit a new 2013 low of RMB 13,815/mt but regained the losses soon supported by a wave of buying. Given support at RMB 13,820/mt and resistance at the 5-day moving average, SHFE lead will stay within a narrow moving range in the near term.