SMM Lead Market Daily Review (2013-10-22)

SHANGHAI, Oct. 23 (SMM) – SHFE 1312 lead contract prices started higher at RMB 14,465/mt on Tuesday and consolidated between RMB 14,470-14,480/mt in morning trading session when investors awaited the US nonfarm payrolls and were cautious in trading ahead of the result. During afternoon trading hours, SHFE lead prices temporarily dipped to RMB 14,435/mt but later rallied to RMB 14,500/mt helped by stronger domestic buying support and rising LME lead prices. SHFE lead for December delivery finally closed the day at RMB 14,490/mt, up RMB 35/mt. Trading volumes gained by 522 lots to 1,924 lots, while positions rose by 542 lots to 10,552 lots.          

 

In Shanghai spot markets, goods of Jinsha were initially offered between RMB 14,340-14,370/mt on Tuesday, but traded prices were only around RMB 14,300/mt with a discount of RMB 110/mt against the most active SHFE lead prices. Hanjiang was traded at RMB 14,250/mt, while Humon was sold at RMB 14,210/mt. Supply for deliverable brands was limited and most transactions were made for cheap resources. Lower prices in Henan also restrained spot lead purchases in Shanghai.