SHANGHAI, Mar. 13 (SMM) – Dragged down by LME lead prices, the most active SHFE 1404 lead contract sank to RMB 13,705/mt after starting at RMB 13,710/mt, and ended down RMB 50/mt or 0.36% at RMB 13,710/mt in Tuesday’s night trading session. During the night session, trading volumes were only 52 lots, and positions were off 18 lots to 10,160 lots. SHFE 1404 lead contract prices stabilized at RMB 13,645/mt after dipping to RMB 13,595/mt due to a large number of short investors liquidating positions. The contract prices finished down RMB 105/mt or 0.76% at RMB 13,655/mt. Trading volumes gained 512 lots to 1,436 lots, and positions shed 740 lots to 9,438 lots. The most active SHFE lead contract has found some support at RMB 13,600/mt on Wednesday, with technical indicators in positive territory.
In the Shanghai physical lead market, goods from Chihong Zn & Ge traded on Wedneday at RMB 13,700/mt, a premium of RMB 35/mt over the most active SHFE lead contract. Nanfang resources were initially offered at RMB 13,700/mt, but later followed SHFE lead prices down to RMB 13,675/mt. Humon and Shuangyan were sold at RMB 13,680/mt and RMB 13,600/mt, respectively. Lead smelters moved goods in small amount, causing relatively tight supply in the market, while downstream producers turned more bearish after lead prices fell back on Wednesday, with trading activity fairly light.