SMM Lead Market Daily Review (2013-10-10)-Shanghai Metals Market

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SMM Lead Market Daily Review (2013-10-10)

Price Review & Forecast 08:49:42AM Oct 11, 2013 Source:SMM

SHANGHAI, Oct. 11 (SMM) – The most active SHFE lead contract price started lower at RMB 14,050/mt Thursday under the influence of falling LME lead overnight, and moved up to RMB 14,080-14,110/mt in the morning trading session. The price rose to RMB 14,125/mt at midday and hit a high of RMB 14,160/mt due to stronger buying support at the tail of trading before ending the day at RMB 14,145/mt, up RMB 50/mt. Trading volumes increased by 216 lots to 636 lots, while positions were up 116 lots to 8,520 lots. The approach of delivery date and falling backwardation for spot lead prompted some cargo holders to switch to the most active SHFE lead contract, with the contract staging the biggest gain among all contracts. 

 
Spot market was feeble, and goods of Jinsha were traded at RMB 14,050-14,060/mt, with a contango of RMB 50/mt against the most active SHFE lead contract price. Chengyuan was quoted at a backwardation of RMB 50/mt over SHFE 1310 lead contract price, but deals were seldom made. Hanjiang and Mengzi were traded at RMB 14,010/mt, while traded price for Humon was RMB 13,970/mt. Smelters reported rising finished goods stocks following the Chinese National Day holiday. Most smelters increased supplies as they felt the need to generate cash so as to stockpile raw materials. Downstream buyers continued to stay on the sidelines, leaving transactions muted.
 

SMM Lead Market Daily Review (2013-10-10)

Price Review & Forecast 08:49:42AM Oct 11, 2013 Source:SMM

SHANGHAI, Oct. 11 (SMM) – The most active SHFE lead contract price started lower at RMB 14,050/mt Thursday under the influence of falling LME lead overnight, and moved up to RMB 14,080-14,110/mt in the morning trading session. The price rose to RMB 14,125/mt at midday and hit a high of RMB 14,160/mt due to stronger buying support at the tail of trading before ending the day at RMB 14,145/mt, up RMB 50/mt. Trading volumes increased by 216 lots to 636 lots, while positions were up 116 lots to 8,520 lots. The approach of delivery date and falling backwardation for spot lead prompted some cargo holders to switch to the most active SHFE lead contract, with the contract staging the biggest gain among all contracts. 

 
Spot market was feeble, and goods of Jinsha were traded at RMB 14,050-14,060/mt, with a contango of RMB 50/mt against the most active SHFE lead contract price. Chengyuan was quoted at a backwardation of RMB 50/mt over SHFE 1310 lead contract price, but deals were seldom made. Hanjiang and Mengzi were traded at RMB 14,010/mt, while traded price for Humon was RMB 13,970/mt. Smelters reported rising finished goods stocks following the Chinese National Day holiday. Most smelters increased supplies as they felt the need to generate cash so as to stockpile raw materials. Downstream buyers continued to stay on the sidelines, leaving transactions muted.