SHANGHAI, Oct. 24 (SMM) – The most active SHFE lead contract prices opened higher at RMB 14,550/mt on Wednesday. Later in morning trading hours, however, SHFE lead prices dipped to RMB 14,430/mt with longs taking profits. Transactions were light in afternoon trading session, since cautious shorts refused to enter the market after a drop of more than RMB 100/mt in a single day, leaving SHFE lead prices basically flat between RMB 14,420-14,430/mt. SHFE lead for December delivery finally ended at RMB 14,430/mt, down RMB 60/mt. Trading volumes dropped 682 lots to 1,242 lots, while positions added 30 lots to 10,582 lots.
Spot lead prices in Shanghai fell back following initial rises. Goods of Jinsha were offered at RMB 14,350/mt, with a discount of RMB 160-170/mt against the most active SHFE lead prices, but with thin transactions. Supply for goods from Chengyuan was few, with quotations between RMB 14,300-14,330/mt, while Mengzi and Hanjiang both were traded at RMB 14,300/mt. Quotes for Humon were initially at RMB 14,250/mt, but later lowered to RMB 14,220/mt. The fall of SHFE lead prices restrained downstream purchases, further dampening transactions. Spread between prices in Jiangxi, Hunan, Henan and those in the Shanghai market continued to widen, with most resources in the three provinces sold below RMB 14,250/mt.