SHANGHAI, Jun. 18 (SMM) – The most active SHFE 1408 lead contract finished down RMB 5/mt at RMB 13,915/mt during Monday’s night session, with only 6 lots traded for the contract.
On Tuesday, the most active contract fluctuated between RMB 13,955-13,985/mt after starting at RMB 13,985/mt, and ended at an intraday low of RMB 13,955/mt, down RMB 5/mt. Trading volumes for the most active contract totaled 588 lots, and positions gained 588 lots to 5,710 lots. SHFE lead prices are expected to swing largely in the RMB 13,950-14,000/mt range in the near term.
Goods from Chihong Zn & Ge, Nanfang, Chengyuan, and Tongguan traded Tuesday between RMB 13,860-13,870/mt, a discount of around RMB 110/mt over the most active SHFE 1408 lead contract. Traded prices were RMB 13,850/mt for Humon brand and Shuangyan supply wrapped with plastic steel, and RMB 13,820/mt for Shuangyan supply wrapped with iron sheet.
Lead smelters ramped up deliveries slightly amid tightening cash flows at the end of the second quarter, and traders were also moving goods actively due to growing inventories. As a result, lead supply outpaced demand in the market. Purchases by lead-acid battery producers remained essentially flat on Tuesday.