#1 Lead Price Movement in Shanghai Market (2014-3-19)

SHANGHAI, Mar. 19 (SMM) – Goods from Chihong Zn & Ge and Yubei traded on Wednesday between RMB 13,670-13,680/mt in Shanghai, a discount of around RMB 50/mt over SHFE 1405 lead contract. Shuangyan and Humon resources were sold between RMB 13,650-13,660/mt. Lead smelters still were reluctant to trade, with a vast majority of supply from Chihong Zn & Ge and Humon in the market. Traders didn’t move hedged goods actively on concern about the difficulty of restocking from lead smelters and on expectations of narrower spot discount in the future. Downstream producers continued to conduct purchases on an as-needed basis since market sentiment failed to improve after lead prices stabilized, with trading activity fairly light on Wednesday.