SHANGHAI, Jul. 24 (SMM) – The most active 1408 lead contract sank to RMB 14,000/mt after opening at RMB 14,130/mt, but later rebounded to close down RMB 5/mt at RMB 14,125/mt, with only 50 lots traded and positions unchanged. During the night session, total trading volumes were 824 lots, with transactions done mostly for the SHFE 1410 lead contract, and overall positions expanded by 212 lots.
On Wednesday, SHFE lead prices initially hovered at RMB 14,080/mt, but later gradually rose to close at an intraday high of RMB 14,140/mt, up RMB 10/mt. Trading volumes for the SHFE 1408 lead contract were 348 lots, and positions were off 42 lots to 5,634 lots. Total trading volumes were 2,830 lots, and positions gained 682 lots to 18,028 lots.
In the Shanghai physical lead market, goods from Chihong Zn & Ge were initially offered Wednesday at RMB 14,020/mt and traded at RMB 14,000/mt, a RMB 100/mt discount over the most active SHFE 1408 lead contract. Traded prices were RMB 14,000/mt for Nanfang, Chengyuan, and Tongguan brands, RMB 13,980-13,990/mt for Hanjiang and Humon brands, and RMB 13,950/mt for Shenqian brand. Chihong Zn & Ge, Western Mining, and Humon all moved goods in limited volumes. Traders moved goods actively on Wednesday after physical lead discounts narrowed, with supply from Nanfang, Chengyuan, and Tongguan brands available in the market. Downstream producers were reluctant to buy after SHFE lead prices fell, leaving trading activity still sluggish.