SHANGHAI, Oct. 22 (SMM) – Lead for December delivery on the Shanghai Futures Exchange, the most active contract, opened Monday’s night session at RMB 13,670/mt, and then followed LME lead down to end at RMB 13,590/mt, RMB 60/mt off.
Boosted by better-than-expected Chinese GDP growth and industrial output, SHFE lead advanced to RMB 13,695/mt, but tracked LME lead down during the afternoon trading session to end down RMB 45/mt at RMB 13,605/mt. Trading volumes for the SHFE 1412 lead contract totaled 2,838 lots, and positions shed 466 lots to 10,344 lots.
Chihong Zn & Ge brand in Shanghai traded Tuesday at RMB 13,670/mt, close to the most active SHFE 1412 lead contract. Traded prices were RMB 13,660/mt for Nanfang brand, and RMB 13,650/mt for Humon and Hanjiang brands. Lead smelters ramped up sales to increase cash flows, helping ease tight supply on the Shanghai market. Market participants, however, were reluctant to buy since concerns over a slowdown in the global economy casted a shadow on lead price outlook. At the same time, higher operating rates at motive lead-acid battery producers in Hunan and Jiangxi contributed to brisk trading activity in these two regions on Tuesday.