SMM Lead Market Daily Review (2014-6-20)

SHANGHAI, Jun. 23 (SMM) – The most active SHFE 1408 lead contract fell back after starting Thursday's night session higher, and closed up RMB 15/mt at RMB 14,015/mt, with only 8 lots traded.

On Friday, SHFE lead prices hovered initially between RMB 14,050-14,070/mt, rising to as high as RMB 14,140/mt, and finished up RMB 110/mt at RMB 14,110/mt. Trading volumes reached a high of 2,388 lots, and positions gained 418 lots to 6,306 lots. SHFE lead prices are expected to test resistance at RMB 14,100/mt next week.

In the Shanghai physical lead market, prices for Chihong Zn & Ge, Nanfang, and Chengyuan brands traded RMB 40-50/mt higher at RMB 13,900/mt, a discount of around RMB 160/mt over the most active SHFE 1408 lead contract. A small volumes of supply from these brands were reported to be sold higher at RMB 13,920/mt. Traded prices were RMB 13,880/mt for Hanjiang and Shuangyan brand, with few transactions reported, and RMB 13,860/mt for Humon brand. Deliveries from lead smelters remained normal, and downstream producers expressed little interest since they regarded lead prices as too high. The market was essentially dominated by supply from traders. A rally in SHFE lead prices during the afternoon trading session increased buying interest at some lead-acid battery producers, but most cargo holders were unwilling to sell, expecting prices to rise.