SHANGHAI, Mar. 5 (SMM) – The most active SHFE 1404 lead contract started at the lowest level of RMB 13,770/mt in Monday’s night session, and finished down RMB 25/mt or 0.18% at RMB 13,810/mt. Trading volumes hit the lowest of 38 lots since the night session was launched. SHFE 1404 lead contract prices were dragged down by declining LME lead prices after opening at RMB 13,810/mt. The metal, however, rebounded to a high of RMB 13,850/mt during the afternoon trading session due to an increasing number of shorts liquidating positions, and ended up RMB 5/mt or 0.04% at RMB 13,840/mt. Trading volumes shrunk by 1,046 lots to 1,334 lots, and positions gained by 254 lots to 9,328 lots.
In China’s physical lead markets on Tuesday, goods from Chihong Zn & Ge and Nanfang traded at RMB 13,750/mt with discounts of RMB 65/mt over the most active SHFE lead contract. Yubei and Humon resources were sold between RMB 13,730-13,740/mt. Yuguang and Chihong Zn & Ge warrants traded at discounts of RMB 40/mt and RMB 60/mt, respectively, against SHFE 1404 lead contract prices. Tongguan and Chengyuan lead supply was sold at premiums of RMB 30/mt over SHFE 1403 lead contract prices. Lead smelters became slightly disinclined to move goods after lead prices extended loss, and downstream purchases decreased sharply on Tuesday.