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.