SMM Lead Market Daily Review (2014-4-22)

SHANGHAI, Apr. 23 (SMM) – Prices for the most active SHFE lead contract hovered most of Monday’s night session around RMB 13,810/mt, up RMB 5/mt, with only 2 lots of traded volumes, pointing to a cautious sentiment among investors. On Tuesday, SHFE lead prices tracked LME lead prices up to a high of RMB 13,900/mt, and closed up RMB 75/mt, or 0.54%, at RMB 13,880/mt. Traded volumes lost 352 lots to 802 lots, while positions shed 356 lots to 6,486 lots. SHFE lead prices have found support at the 5-day moving average, with additional technical indicators positive. European and US economic reports due for release late Tuesday and HSBC’s China manufacturing PMI all are expected to come in positive, and SHFE lead prices should continue to test resistance at the RMB 13,900/mt mark for the near term.

In the Shanghai physical lead market, goods from Chihong Zn & Ge were offered Tuesday at RMB 13,870/mt, a premium of RMB 50/mt over the most active SHFE 1405 lead contract price. Traded prices were RMB 13,840/mt for Nanfang brand, and RMB 13,820-13,830/mt for Shuangyan, Hanjiang, and Humon resources. Smelters and traders both expressed little selling interest, causing relatively scarce quotations and with traded prices up RMB 10-20/mt from Monday. In the meantime, downstream producers considered present lead prices too high and had lower enthusiasm for purchases, resulting in a significant fall in traded volumes.