SHANGHAI, Aug. 5 (SMM) – The most active SHFE 1410 lead contract swung by around RMB 50/mt during Monday’s night session after opening at RMB 15,020/mt, and finished up RMB 180/mt at RMB 15,040/mt. During the night session, total traded volumes were 56,746 lots, and positions rose 12 lots to 60,830 lots.
On Tuesday, SHFE lead prices fell to RMB 14,875-14,945/mt after starting at RMB 15,040/mt, and closed up RMB 45/mt, or 0.3%, at RMB 14,905/mt. Traded prices tumbled by 41,486 lots to 82,506 lots, and positions decreased 2,478 lots to 41,046 lots. SHFE lead prices are expected to hover persistently below the RMB 15,000/mt mark in the near term.
In the Shanghai physical lead market, goods from Chihong Zn & Ge, Chengyuan, and Nanfang were initially offered at RMB 14,800/mt, at a RMB 100-130/mt discount over the most active SHFE 1410 lead contract, but later traded lower at RMB 14,750-14,760/mt. Traded prices were RMB 14,710-14,730/mt for Humon brand. As SHFE lead prices fell, lead smelters showed higher selling interest, with some trading at lower prices. A narrower price gap between SHFE lead and physical lead, combined with poor sales, discouraged traders from buying. Meanwhile, lead-acid battery producers cut back on purchases on Tuesday out of fears that prices may fall for the near term.