SHANGHAI, Apr. 4 (SMM) – Soft economic data from European countries released overnight triggered expectations that the European Central Bank may ease its monetary policy. US jobs report from ADP and February factory orders also came in positive. SHFE lead prices followed LME lead prices up to a high of RMB 13,740/mt after starting at RMB 13,720/mt, but later fell to end down RMB 10/mt at RMB 13,685/mt during Wednesday’s night session. Traded volumes were 32 lots, and positions were off 6 lots to 7,042 lots. On Thursday, SHFE lead prices edged down to the RMB 13,700-13,720/mt trading range after touching RMB 13,740/mt briefly, and finished up RMB 5/mt at RMB 13,700/mt. Traded volumes were 476 lots, and positions were down 176 lots to 6,872 lots. SHFE lead prices now fare the worst among the base metals complex, pressured by all major moving averages. Despite negative technical indicators, any downside in prices will be limited due to strong copper, aluminum, and nickel prices.
In the Shanghai physical lead market, goods from Chihong Zn & Ge traded Thursday at RMB 13,670/mt, a discount of RMB 30-40/mt over the SHFE 1405 lead contract price. Humon and Shuangyan resources were sold at RMB 13,650-13,660/mt and RMB 13,640/mt, respectively. Chihong Zn & Ge and Humon moved goods in light volumes, while Nanfang and Chengyuan branded lead was little found in the market. Despite the obtaining of banking loans and restocking demand before the arrival of the Tomb Sweeping day, downstream purchases were restrained by weak SHFE lead prices.