SMM Lead Market Daily Review (2014-7-25)

SHANGHAI, Jul. 28 (SMM) – Lead for October delivery, the most active contract, advanced to as high as RMB 14,370/mt after opening at RMB 14,265/mt, and ended up RMB 125/mt at RMB 14,360/mt on the Shanghai Futures Exchange. Trading volumes for the SHFE 1410 lead contract were 494 lots, and positions rose 220 lots to 5,802 lots. During the night session, total trading volumes were 754 lots, and total positions were up 270 lots to 18,474 lots.

On Friday, the most active SHFE 1410 lead contract closed significantly higher at RMB 14,800/mt, up RMB 565/mt. Total traded volumes surged to record 22,730 lots on the Shanghai Futures Exchange, with all SHFE lead contracts rising by the daily trading limit.

In the Shanghai physical lead market, goods from Jinsha traded Friday at RMB 14,150/mt, an around RMB 200/mt discount over the most active SHFE 1410 lead contract, after SHFE lead prices initially fell. As SHFE lead prices surged later by RMB 415/mt, most traders refrained from moving goods. As a result, Jinsha brand was offered at a RMB 300/mt discount, while Humon brand was also quoted at a RMB 350/mt discount and traded at RMB 14,300-14,350/mt. Downstream producers stayed largely out of the market since they considered prices too high on Friday.