SMM Lead Market Daily Review (2013-10-18)

SHANGHAI, Oct. 21 (SMM) – SHFE 1312 lead contract price, boosted by the soaring LME lead overnight, opened higher at RMB 14,350/mt last Friday. Later, as China’s Q3 GDP reportedly grew at annual rate of 7.8%, better than the 7.5% in Q2, SHFE lead for December delivery broke above RMB 14,000/mt driven by stronger buying support and move between RMB 14,380-14,420/mt, outperforming LME lead. In the afternoon trading session, however, risk aversion loomed in the market, dampening trading, with the most active SHFE lead contract closing the week at RMB 14,395/mt, up RMB 115/mt from Thursday. Trading volumes added 312 lots to 1,392 lots, and positions grew to an all-time high of 10,042 lots, up 496 lots. Investors remained bullish to SHFE lead.