SMM Brief on SHFE Lead Futures (2013-11-21)

SHANGHAI, Nov. 21 (SMM) – The most active SHFE 1401 lead contract price started at RMB 14,015/mt on Thursday. Minutes of the US Federal Reserve’s October meeting overnight revealed that the Fed would start scaling back its QE policy provided this was warranted by economic growth. Besides, the European Central Bank was reported to be considering moving to negative interest rates, pressuring metals prices. In response, SHFE lead price dipped below RMB 14,000/mt after opening, and extended losses in afternoon trading session, touching a low of RMB 13,920/mt. LME lead price and the Shanghai Composite Index narrowed their losses before the end of the trading, giving a boost to SHFE lead price. SHFE lead finally ended at RMB 13,950/mt, down RMB 55/mt or 0.39% on Thursday. Transactions expanded 180 lots to 1,138 lots, while open interest increased 6 lots to 10,526 lots.