SHANGHAI, Mar. 21- (SMM) – The most active SHFE 1405 lead contract prices dipped to RMB 13,660/mt after starting at RMB 13,680/mt, but later followed LME lead prices up to around RMB 13,750/mt in Wednesday’s night session. The contract prices closed up RMB 30/mt at RMB 13,755/mt. During the trading hours, trading volumes rose to 136 lots, while positions shrunk 44 lots to 7,114 lots. SHFE 1405 lead contract prices fell slightly to RMB 13,755/mt after advancing to the RMB 13,800/mt mark, and finished up RMB 20/mt, or 0.15%, at RMB 13,745/mt on Thursday. Trading volumes shed 276 lots to 714 lots, and positions added 102 lots to 7,260 lots. Lead smelters were reluctant to move goods against shortages of lead concentrates in China, lending some support to SHFE lead prices.
In the Shanghai physical lead market, goods from Chihong Zn & Ge traded on Thursday at RMB 13,720/mt, a discount of RMB 50/mt over the most active SHFE lead contract prices. Tongguan and Humon resources were sold at RMB 13,710/mt and RMB 13,670-13,680/mt, respectively. Lead smelters stepped up moving goods after spot lead prices were underpinned by a rise in SHFE lead prices, but there was still limited amount of lead warrant supply flowing in the physical market. Although downstream producers had significantly higher buying interest, tight lead supply in Shanghai restrained trading activity on Thursday.