SMM Lead Market Daily Review (2014-8-8)

SHANGHAI, Aug. 11 (SMM) – Lead for October delivery, the most active contract, opened Thursday’s night session at RMB 14,770/mt, and then tracked LME lead prices up to RMB 14,870/mt, closing at RMB 14,805/mt. During the night session, trading volumes for the SHFE 1410 lead contract totaled 53,872 lots, and positions expanded 870 lots to 37,266 lots.

On Friday, SHFE lead prices tracked LME lead prices down to as low as RMB 14,645/mt, and ended down RMB 15/mt at RMB 14,725/mt. Trading volumes for the SHFE 1410 lead contract rose to 82,784/mt, but positions fell 1,352 lots to 35,044 lots on Friday.

In the Shanghai physical lead market, goods from Chihong Zn & Ge were initially offered at RMB 14,650/mt, a RMB 90/mt discount over the most active SHFE 1410 lead contract, but traded lower at RMB 14,630/mt. Chengyuan and Nanfang resources were quoted at a RMB 80/mt discount over the SHFE 1410 lead contract and at a RMB 40/mt discount over the SHFE 1409 lead contract. Humon supply was offerd at RMB 14,600/mt, but barely traded. Falling SHFE lead prices prompted traders to discount goods, but downstream purchases were light due to increasing bearish sentiment. Physical lead was quoted at as low as RMB 14,550-14,600/mt during last Friday’s afternoon trading hours.