SHANGHAI, Jun 3 (SMM) – The most active SHFE 1407 lead contract started significantly lower during Thursday’s night session and then advanced to around RMB 14,000/mt before ending down RMB 15/mt at RMB 13,995/mt. During the night session, a total of 242 lots were traded, among which 184 lots were traded for the SHFE 1408 lead contract. On Friday, SHFE lead prices hovered steadily between RMB 14,000-14,010/mt during the morning trading session, but fell slightly during the afternoon trading session to finish down RMB 30/mt at RMB 13,980/mt. Traded volumes amounted to only 232 lots, while positions lost 76 lots to 4,950 lots.
In the Shanghai physical lead market, traded prices for Chihong Zn & Ge brand initially were RMB 13,950/mt, but later fell to RMB 13,930-13,940/mt, a RMB 60-70/mt discount over the most active SHFE 1407 lead contract. Traded prices were RMB 13,940/mt for Nanfang resources and RMB 13,920-13,930/mt for Humon and Shuangyan supply wrapped with plastic sheet. Goods from Shuangyan brand wrapped with iron sheet were sold at RMB 13,900/mt. Cargo holders expressed strong willingness to discount goods on tight liquidity and supply overhangs, while downstream producers had extremely low buying interest on Friday. High pile-up of finished goods inventories and the arrival of the Dragon Boat Festival combined to hurt demand.