SHANGHAI, Mar. 19- (SMM) – Prices for the most active SHFE 1404 lead contract essentially hovered around RMB 13,575/mt after opening at RMB 13,570/mt, and closed up RMB 10/mt or 0.07% at RMB 13,565/mt in Monday’s night session. Trading volumes were only 8 lots, and positions were off merely 6 lots to 7,730 lots during the trading hours. Boosted by LME lead prices, SHFE 1404 lead contract prices rallied as high as RMB 13,645/mt after breaking above the 5-day moving average, and then stabilized around RMB 13,630/mt. The metal closed up RMB 55/mt or 0.41% at RMB 13,630/mt on Tuesday. Trading volumes shed 166 lots to 664 lots, while positions contracted 372 lots to 7,364 lots. SHFE 1404 lead contract prices have gradually found base support, but should remain volatile, with the lack of buying impetus.
In the Shanghai physical lead market, goods from Chihong Zn & Ge, Nanfang, and Chengyuan traded on Tuesday between RMB 13,670-13,680/mt, a premium of around RMB 50/mt over the most active SHFE lead contract price. Traded prices were RMB 13,660-13,670/mt for Humon resources, and RMB 13,570-13,590/mt for Shuangyan supply. Lead smelters had higher willingness to move goods at firm prices. A vast majority of downstream producers remained in a wait-and-see attitude on Tuesday despite a slight pickup in purchases.