SHANGHAI, Mar. 12 (SMM) – The most active SHFE 1404 lead contract basically hovered around RMB 13,630/mt after starting Monday’s night trading session at RMB 13,635/mt, and ended up RMB 30/mt, or 0.22% at RMB 13,635/mt. During the night session, trading volumes were only 38 lots, and positions were off 22 lots to 10,376 lots. Following the release of most bearish news, SHFE lead prices led the rise to peak at RMB 13,835/mt, and then fluctuated narrowly around the RMB 13,800/mt mark. The metal closed up RMB 160/mt or 1.18% at RMB 13,765/mt. Trading volumes shed 1,498 lots to 924 lots, and positions contracted 220 lots to 10,178 lots on Tuesday. Given downbeat technical indicators, the rebound in SHFE lead prices will not be sustained.
Goods from Chihong Zn & Ge initially traded at RMB 13,750/mt in Shanghai on Tuesday, a discount of RMB 50 over the most active SHFE lead contract price, and later traded between RMB 13,760-13,770/mt after SHFE lead prices rose. Tongguan, Humon, and Shuangyan resources were sold between RMB 13,720-13,730/mt. Boosted by a sharp rise in SHFE lead prices, spot lead prices traded RMB 100/mt higher than Monday in the Shanghai market. Lead smelters stepped up moving goods, but lead warrant supply decreased after spot lead began trading at a discount. Downstream lead-acid battery producers had low buying interest in a wait-and-see attitude towards a rebound in spot lead prices, with trading volumes down compared with Monday’s level.