SHANGHAI, Jul. 17 (SMM) – On Tuesday, SHFE lead did not open until two minutes before the closing of morning trading hours. The most active SHFE lead contract price started at RMB 13,880/mt with resistance at the 5-day moving average. In the afternoon, trading volumes was quite limited, weighing on lead prices, with price hitting an intraday low of RMB 13,875/mt before finally closing at RMB 13,890/mt. Trading volumes fell 54 lots to 12 lots, positions remained unchanged at 2,500 lots. Sources from SHFE told SMM that SHFE is planning to adjust the amount of contract from 25 mt/lot to 5mt/lot, but the timing of the adjustment will be subject to approval of the China Securities Regulatory Commission. SMM will watch closely on further developments.
Spot lead prices in China remained little changed. Limited supplies caused Chihong Zn & Ge to hold quotes high at RMB 13,780/mt. Tongguan was quoted at RMB 13,760/mt, and Mengzi and Hanjiang were offered RMB 13,700-13,710/mt. Hengbang’s goods were quoted at RMB 13,640-13,650/mt, but transactions were rarely made. Investors were cautious before the testimony of Ben Bernanke, with smelters supplying normally and smelters purchasing as needed.