SHANGHAI, Oct. 23 (SMM) – Lead for December delivery on the Shanghai Futures Exchange, the most active contract, opened Tuesday’s night session at RMB 13,670/mt, and followed LME lead up as high as RMB 13,760/mt subsequently. The price of the SHFE 1412 lead contract ended up only RMB 25/mt at RMB 13,655/mt due to increased selling force.
SHFE lead hovered initially at RMB 13,600-13,640/mt on Wednesday, and closed up RMB 5/mt at RMB 13,635/mt. Positions for the SHFE 1412 lead contract shrank 462 lots to 9,882 lots.
Chihong Zn & Ge, Nanfang, Chengyuan, and Tongguan brands in Shanghai traded Wednesday at RMB 13,650-13,660/mt, an about RMB 20/mt premium to the most active SHFE 1412 lead contract. Traded prices were RMB 13,640-13,650/mt for Humon and Hanjiang brands. Pressured by tightening cash flows at the end of October, Chihong Zn & Ge, Nanfang, Hanjiang, and Humon moved goods, helping increase supply. Traders were buying actively to replenish stocks. Lead-acid battery producers, however, slashed purchases on Wednesday due to sufficient raw material inventories and bearish outlook towards lead prices.