SHANGHAI, Oct. 16 (SMM) – SHFE 1411 lead contract prices opened at RMB 13,800/mt Tuesday evening, and dipped to RMB 13,755/mt due to falling LME lead prices, but rallied later on to close at RMB 13,790/mt, down RMB 5/mt. China’s September CPI released today hit a record low since January 2010, and PPI fell for 31 months in a row. SHFE 1411 lead contract prices were thus dragged down to RMB 13,665/mt, down RMB 110/mt or 0.8%. Trading volumes were up 1,368 to 2,602 lots, and total positions decreased 464 to 13,296 lots. SHFE 1411 lead contract prices are expected to pull down due to pessimistic unemployment rate in September and US retail sales.
In the Shanghai physical lead market, Chihong Zn & Ge, Nanfang, Chengyuan, Shuangyan, Tongguan, and Humon brands traded Wednesday at RMB 13,750/mt. Jinsha brand was sold at RMB 13,760/mt in light volumes, level with the most active SHFE 1411 lead contract, and Hanjiang brand traded at RMB 13,730/mt. Lead smelters ramped up sales slightly since prices remained firm despite a fall in SHFE lead. Traders turned more willing to move goods, but were reluctant to replenish stocks. Meanwhile, downstream producers curtailed purchases on Wednesday out of fears that prices will fall for the near term.