SHANGHAI, Jun. 20 (SMM) – The most active SHFE 1408 lead contract continued to hover around the RMB 14,000/mt mark during Wednesday’s night session, with 50 lots traded. During the night session, trading volumes totaled only 62 lots.
On Thursday, SHFE lead prices crept up to a high of RMB 14,065/mt after starting at RMB 14,010/mt, but later tracked LME lead prices down to a trough of RMB 13,950/mt. The metal rebounded to around RMB 13,990/mt at the tail of the trading, boosted by shorts liquidating positions, and finished down RMB 60/mt at RMB 13,965/mt. Trading volumes reached 478 lots, and positions expanded 244 lots to 5,888 lots.
In the Shanghai physical lead market, goods from Chihong Zn & Ge traded Thursday at RMB 13,850-13,860/mt in light volumes, a discount of around RMB 130/mt over the most active SHFE 1408 lead contract. Quotes from Nanfang, Chengyuan, and Chihong Zn & Ge were the same, but transactions were sluggish. Traded prices were RMB 13,850/mt for Hanjiang and Shuangyan brands, and RMB 13,840/mt for Humon supply. Leading brands cargo holders were reluctant to move goods at these prices, and traders also expressed little interest in quoting prices, dampened by soft purchases by downstream producers.