SMM Lead Market Daily Review (2014-10-28)

SHANGHAI, Oct. 29 (SMM) – Lead for December delivery on the Shanghai Futures Exchange, the most active contract, swung between RMB 13,650-13,690/mt after opening Monday’s night session at RMB 13,655/mt, and finished up RMB 60/mt at RMB 13,670/mt.

On Tuesday, SHFE lead initially retreated to RMB 13,545/mt, but rebounded to RMB 13,650-13,660/mt subsequently before closing down RMB 10/mt at RMB 13,600/mt. Trading volumes for the SHFE 1412 lead contract reached 2,704 lots, and positions expanded 236 lots to 9,320 lots.

Chihong Zn & Ge brand in Shanghai traded Tuesday at RMB 13,660-13,670/mt, a RMB 10-20/mt premium to the most active SHFE 1412 lead contract. Traded prices were RMB 13,650/mt for Humon and Hanjiang brands. Lead smelters of these brands moved goods normally, but no sales of other brands were reported. Traders were disinclined to sell since physical premiums remained essentially unchanged from last week, while downstream producers bought at a slow pace on Tuesday.