SHANGHAI, Mar. 28 (SMM) – SHFE lead prices dipped briefly to RMB 13,760/mt after starting at RMB 13,770/mt, and then rebounded to end up RMB 15/mt at RMB 13,800/mt during Wednesday’s night session. During the trading hours, trading volumes shed 100 lots to 58 lots, while positions gained 8 lots to 7,536 lots. On Thursday, SHFE lead prices sank to around RMB 13,760-13,780/mt, and finished down RMB 35/mt at RMB 13,750/mt. Trading volumes totaled 864 lots, while positions contracted 244 lots to 7,284 lots. SHFE lead prices look set to fluctuate between RMB 13,720-13,780/mt in the near term with the lack of guidance from major news.
In the Shanghai physical lead market, traded prices were essentially unchanged from Wednesday. Goods from Chihong Zn & Ge, Chengyuan, Nanfang, and Tongguan traded on Thursday at RMB 13,710/mt, a discount of around RMB 60/mt over SHFE 1405 lead contract prices. Shuangyan resources wrapped with iron sheet were offered at RMB 13,650/mt. Lead smelters had high willingness to trade due to tight liquidity by the end of the first quarter and a small rally in lead prices, with significantly more spot lead supply in the market. Downstream producers, however, had little buying interest against sales difficulty and banking loan repayment pressure, leaving trading activity still light on Thursday.