SHANGHAI, Apr. 24 (SMM) – The most active SHFE 1405 lead contract price started Tuesday’s night session at RMB 13,870/mt, and then tracked LME lead prices up to close RMB 130/mt higher at RMB 13,965/mt. Traded volumes totaled 326 lots, while positions lost 14 lots to 6,472 lots. HSBC’s China manufacturing PMI for April rose slightly to 48.3, up from March’s 48, fueling a bullish sentiment in the market. SHFE lead prices hovered around RMB 13,930/mt during the morning trading session, and closed Wednesday up RMB 120/mt at RMB 13,955/mt. Traded volumes rose sharply to 1,208 lots, and positions gained 70 lots to 6,556 lots.
In the Shanghai physical lead market, goods from Chihong Zn & Ge traded Wednesday between RMB 13,960-13,980/mt, a discount of some RMB 40/mt over the most active SHFE 1405 lead contract. Traded prices were RMB 13,950/mt for Nanfang and Tongguan brands, and RMB 13,920-13,930/mt for Shuangyan, Humon, and Hanjiang resources. As a sharp rally in SHFE lead prices and relatively tight supply pushed up physical lead prices, smelters turned less willing to move goods, while traders held prices firm on low inventories and with a bullish sentiment. Meanwhile, high prices in the Shanghai market shied downstream producers away from purchasing goods, putting a lid on trading activity on Wednesday.