SMM Brief on SHFE Lead Prices (2014-3-6)

SHANGHAI, Mar. 6 (SMM) – The most active SHFE 1404 lead contract hovered around RMB 13,920/mt after starting at RMB 13,890/mt, and finished up RMB 10/mt or 0.07% at RMB 13,920/mt at Wednesday’s night session. During the night session, trading volumes were only 36 lots, and positions gained by only 18 lots to 9,578 lots. Dragged down by a fall in LME lead prices, SHFE lead prices broke below the RMB 13,800/mt mark, and fell to a fresh yearly low of RMB 13,710/mt at the tail of the trading. The metal closed down RMB 135/mt or 0.97% at RMB 13,775/mt. Trading volumes contracted 146 lots to 1,690 lots, and positions gained 454 lots to 10,014 lots. Given bearish technical indicators, SHFE lead prices should test support at RMB 13,700/mt.