SHANGHAI, Jul. 3 (SMM) – Prices for the most active SHFE 1408 lead contract immediately dipped to RMB 13,860/mt after opening Tuesday’s night session lower at RMB 14,060/mt. SHFE lead prices later bounced back to hover between RMB 14,070-14,090/mt, and finished down RMB 20/mt at RMB 14,070/mt. During the night session, trading volumes for the most active contract totaled merely 152 lots, and positions added 66 lots to 6,834 lots.
On Wednesday, SHFE lead prices sank to as low as RMB 13,910/mt, dampened by a plunge in SHFE copper and zinc prices in the morning trading session, but later rebounded to RMB 13,980-14,000/mt. The metal hovered initially at around RMB 13,960/mt during the afternoon trading session, and then recovered to finish down RMB 85/mt at RMB 14,005/mt. Trading volumes for the SHFE 1408 lead contract amounted to 1,334 lots, and positions lost 174 lots to 6,594 lots.
In the Shanghai physical lead market, goods from Chihong Zn & Ge, Nanfang, and Chengyuan traded Wednesday at RMB 13,880/mt, a RMB 150/mt discount over the most active SHFE 1408 lead contract. Traded prices were RMB 13,850-13,860/mt for Hanjiang and Shuangyan brands and RMB 13,830/mt for Humon brand.
Physical lead prices fell on Wednesday by only RMB 20-30/mt, compared to a RMB 60/mt fall in SHFE lead prices, indicating limited supply available in the Shanghai market. Downstream purchases improved slightly before SHFE lead prices dropped, due partly to a new round of bank loans. Trading activity, however, turned muted following the price fall.