SHANGHAI, Mar. 26 (SMM) – The most active SHFE 1405 lead contract price followed LME lead prices down to RMB 13,720/mt after starting at RMB 13,775/mt during Monday’s night session. Trading volumes shed 314 lots to 136 lots, while positions added only 96 lots to 7,380 lots. Longs entered the market actively after the US dollar index fell below the 80 mark, pushing SHFE 1405 lead contract prices to RMB 13,775/mt. During the afternoon trading session, SHFE lead prices fluctuated around RMB 13,760/mt, and closed up RMB 30/mt or 0.22% at RMB 13,770/mt on Tuesday. Trading volumes contracted 44 lots to 406 lots, while positions gained 54 lots to 7,338 lots. SHFE lead prices met resistance at the 20-day moving average, but found solid support at the 5-day moving average on Tuesday.
Goods from Chihong Zn & Ge, Chengyuan, Nanfang, and Shuangyan traded on Monday between RMB 13,690-13,710/mt in Shanghai, a discount of around RMB 60/mt over the most active SHFE 1405 lead contract price. Price gap between various lead brands narrowed with a lack of low-priced supply. As lead prices stabilized and high demand season neared an end, lead smelters had higher willingness to move goods, while traders also were more inclined to purchase goods. Downstream lead-acid battery producers, however, only purchased as needed due to sluggish end-user consumption. Trading activity was modest on Tuesday.