SMM Lead Market Daily Review (2014-8-14)-Shanghai Metals Market

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SMM Lead Market Daily Review (2014-8-14)

Price Review & Forecast 08:58:24AM Aug 15, 2014 Source:SMM

SHANGHAI, Aug. 15 (SMM) – The most active SHFE 1410 lead contract dipped to as low as RMB 14,535/mt after starting Wednesday’s night session at RMB 14,655/mt, dampened by negative economic data from China, European countries and the US.

The price of the soft metal closed the night session down RMB 175/mt at RMB 14,560/mt. Trading volumes for the most active contract rebounded to 30,188 lots, and positions gained by 1,982 lots. Investors held a more bearish stance after SHFE lead prices fell below the RMB 14,600-14,850/mt range, with a higher percentage of new short positions.

On Thursday, SHFE lead prices initially sank to a trough of RMB 14,390/mt, finding support at RMB 14,400/mt, and bounced back during the afternoon trading session to end down RMB 240/mt at RMB 14,495/mt. Trading volumes for the SHFE 1410 lead contract were 50,194 lots, and positions were off 658 lots to 32,598 lots.

In the Shanghai physical lead market, goods from Chihong Zn & Ge, Nanfang, and Chengyuan were offered at a RMB 100/mt discount over the SHFE 1410 lead contract and a RMB 50/mt discount over the SHFE 1409 lead contract. These lead brands were sold at RMB 14,340-14,350/mt. Humon resources were initially quoted at RMB 14,370/mt, but traded lower at RMB 14,360/mt. Shenqian and Mulun lead brands were sold at RMB 14,300/mt.

Only Humon moved goods among lead smelters, and most of supply was from traders. A narrower price gap between SHFE lead and physical lead gave an incentive to traders to move goods, but a sharp fall in SHFE lead prices left downstream producers on the sidelines. Trading activity remained light on Thursday even as some entered the market to hunt for bargains.
 

Price

more
Aluminum Ingot
Aug.23
14310.0
-50.0
(-0.35%)
Aluminum Ingot - Fo Shan
Aug.23
14320.0
-40.0
(-0.28%)
Aluminum Ingot - Wu Xi
Aug.23
14310.0
-60.0
(-0.42%)
Aluminum Ingot - Hang Zhou
Aug.23
14325.0
-60.0
(-0.42%)
Aluminum Ingot - Chong Qing
Aug.23
14340.0
-40.0
(-0.28%)

SMM Lead Market Daily Review (2014-8-14)

Price Review & Forecast 08:58:24AM Aug 15, 2014 Source:SMM

SHANGHAI, Aug. 15 (SMM) – The most active SHFE 1410 lead contract dipped to as low as RMB 14,535/mt after starting Wednesday’s night session at RMB 14,655/mt, dampened by negative economic data from China, European countries and the US.

The price of the soft metal closed the night session down RMB 175/mt at RMB 14,560/mt. Trading volumes for the most active contract rebounded to 30,188 lots, and positions gained by 1,982 lots. Investors held a more bearish stance after SHFE lead prices fell below the RMB 14,600-14,850/mt range, with a higher percentage of new short positions.

On Thursday, SHFE lead prices initially sank to a trough of RMB 14,390/mt, finding support at RMB 14,400/mt, and bounced back during the afternoon trading session to end down RMB 240/mt at RMB 14,495/mt. Trading volumes for the SHFE 1410 lead contract were 50,194 lots, and positions were off 658 lots to 32,598 lots.

In the Shanghai physical lead market, goods from Chihong Zn & Ge, Nanfang, and Chengyuan were offered at a RMB 100/mt discount over the SHFE 1410 lead contract and a RMB 50/mt discount over the SHFE 1409 lead contract. These lead brands were sold at RMB 14,340-14,350/mt. Humon resources were initially quoted at RMB 14,370/mt, but traded lower at RMB 14,360/mt. Shenqian and Mulun lead brands were sold at RMB 14,300/mt.

Only Humon moved goods among lead smelters, and most of supply was from traders. A narrower price gap between SHFE lead and physical lead gave an incentive to traders to move goods, but a sharp fall in SHFE lead prices left downstream producers on the sidelines. Trading activity remained light on Thursday even as some entered the market to hunt for bargains.