SHANGHAI, Jun. 6 (SMM) – Lead for August delivery became the most active contract on the Shanghai Futures Exchange on Wednesday, with no traded volumes reported for the contract during the night session. The SHFE 1407 and 1409 lead contracts both fell RMB 10-20/mt, with around 10 lots of traded volumes for these two contracts.
On Thursday, SHFE lead prices dipped as low as RMB 14,005/mt after starting at RMB 14,020/mt, and closed down RMB 5/mt at RMB 14,020/mt. Traded volumes for the SHFE 1408 lead contract totaled only 184 lots, while those for the SHFE 1406 lead contract reached more than 1,000 lots on Thursday.
In the Shanghai physical lead market, goods from Chihong Zn & Ge, Nanfang, and Humon traded Thursday largely at RMB 13,900/mt, a RMB 120/mt discount over the most active SHFE 1408 lead contract. Hanjiang and Shuangyan resources were sold at RMB 13,890/mt, with relatively few quotes.
Traders were actively moving goods, but downstream producers expressed little buying interest due to sluggish consumption, mounting finished goods inventories, as well as tight liquidity. Meanwhile, some producers also turned to purchase secondary refined lead. Warehouse receipts for goods in the Guangdong market traded at an around RMB 20/mt over the SHFE 1406 lead contract. Supply in Jiangxi, Henan, and Hunan provinces increased significantly from a month ago.