SHANGHAI, Mar. 6 (SMM) – SHFE lead prices started at RMB 13,895/mt in Tuesday’s night session, and then closed up RMB 115/mt to a high of RMB 13,925/mt, pushed up by easing tensions in Ukraine and rising LME lead prices. During the night session, trading volumes were 280 lots, and positions were off 2 lots to 9,326 lots. SHFE lead prices hovered mostly around RMB 13,900/mt in the morning trading session, and reached as high as RMB 13,970/mt at the tail of the trading due to stronger buying support. The metal finally ended up RMB 115/mt at RMB 13,925/mt on Wednesday. Trading volumes rose to 1,836 lots, and positions gained 232 lots to 9,560 lots. SHFE lead prices have risen above the 5-day moving average, and look set to rebound to the range of RMB 13,850-14,000/mt.
In the Shanghai physical lead market, warrants of Chihong Zn & Ge and Yubei traded Wednesday at RMB 13,800/mt, a discount of RMB 90/mt over the most active SHFE lead contract. Humon resources were sold at RMB 13,780/mt. Less supply from lead smelters and widening gap between spot lead and SHFE lead prices restrained outflows of warrant supply, with a significant drop in quotations. Downstream producers remained bearish on lead prices, and mostly stayed on the sidelines after lead prices climbed, leaving transactions light on Wednesday.