SHANGHAI, Jul. 22 (SMM) – SHFE lead prices started higher at RMB 13,890/mt on Friday, but met resistance and moved between RMB 13,860-13,880/mt in the morning trading session. In the afternoon, the Shanghai Composite Index fell 1.52% to dip below 2,000, dragging down base metals. Coupled with profit-taking by some investors ahead of the weekend, the most active SHFE lead contract price finally closed at RMB 13,825/mt, down RMB 20/mt from a day earlier. Trading volumes dropped 176 lots to 50 lots, while holdings increased 20 lots to 2,508 lots.
In China’s spot lead market, cargo holders mostly held prices firm, regardless of the decline in SHFE lead prices. Quotes for Jinsha were mainly at RMB 13,780-13,790/mt, with discounts of RMB 100-110/mt against the most active SHFE lead contract price, but transactions were scarce. Nanfang and Hanjiang were quoted at RMB 13,740/mt and RMB 13,720/mt, respectively, while Hengbang was offered at RMB 13,670-13,680/mt, but traded prices were low. Supply in Shanghai was relatively tight, while downstream buying interest was low.