SHANGHAI, Mar. 20- (SMM) –The most active SHFE 1404 lead contract prices rose slightly to RMB 13,715/mt after opening at RMB 13,640/mt, boosted by LME lead prices, and finished up RMB 25/mt or 0.18% at RMB 13,635/mt in Tuesday’s night session. During the trading hours, trading volumes were only 28 lots, while positions were off merely 2 lots. SHFE 1405 lead contract became the most active contract to start at RMB 13,720/mt on Wednesday, and then hovered between RMB 13,715-13,740/mt. The contract later touched a high of RMB 13,745/mt, and ended up RMB 45/mt or 0.33% at RMB 13,745/mt. Trading volumes gained 302 lots to 990 lots, and positions shed 6 lots to 7,158 lots. SHFE lead prices encountered resistance at the 10-day moving average, but have found strong base support at RMB 13,670/mt on Wednesday.
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.