SHANGHAI, Apr. 16 (SMM) – The most active SHFE 1405 lead contract price advanced to RMB 13,820/mt after starting Monday’s night session at RMB 13,770/mt, and closed up RMB 45/mt, or 0.33%, at RMB 13,805/mt. Trading activity was brisk on Tuesday with the arrival of delivery for the SHFE 1404 lead contract. The most active SHFE 1405 lead contract price, however, dipped to around RMB 13,710/mt, dampened by the fall in the Shanghai Composite Index, and finished down RMB 15/mt, or 0.11%, at RMB 13,745/mt. Traded volumes added 618 lots to 1,316 lots, while positions gained 234 lots to 6,440 lots. SHFE lead prices have found strong support at RMB 13,700/mt, but encountered resistance at RMB 13,800/mt.
In the Shanghai physical lead market, goods from Chihong Zn & Ge traded between RMB 13,760-13,770/mt, initially at a par with the SHFE 1405 lead contract price but later at premiums of RMB 30-40/mt over the contract price. Traded prices were RMB 13,750/mt for Nanfang and Shuangyan brands, and RMB 13,730-13,740/mt for Humon resources. Smelters and traders cut back on deliveries in the wake of a sudden fall in SHFE lead prices, while downstream producers also expressed significantly lower buying interest with a wait-and-see posture. Traded volumes registered a marked drop Tuesday as against Monday’s level.