SMM Brief on SHFE Lead Futures (2013-7-23)

SHANGHAI, Jul. 23 (SMM) – SHFE 1309 lead contract price opened higher at RMB 13,880/mt and went up to RMB 13,890/mt driven by buying support and rising Shanghai Composite Index. But prices lacked impetus to rise further and surrendered earlier gains with shorts entering the markets. However as support at the 5-day moving average is strong, the most active SHFE lead contract eventually closed at RMB 13,860/mt, down RMB 15/mt. Trading volumes fell 34 lots to 84 lots, and positions fell 24 lots to 2,550 lots. SHFE lead is expected to keep hovering at RMB 13,820-13,900/mt given the unimproved consumption in spot markets.