SMM Lead Market Daily Review (2015-1-21)

SHANGHAI, Jan. 22 (SMM) – Lead for March delivery on the Shanghai Futures Exchange, the most active contract, started at RMB 12,555/mt and then fell to RMB 12,470-12,500/mt before ending up RMB 90/mt, or 0.73% at RMB 12,495/mt.

On Wednesday, SHFE lead fluctuated largely between RMB 12,480-12,520/mt and ended up RMB 110/mt, or 0.89% at RMB 12,515/mt. Trading volumes for the SHFE 1503 lead contract shrank 2,064 lots to 8,622 lots, while positions shed 696 to 18,568.

Supplies from Chihong Zn & Ge traded at RMB 12,600/mt in Shanghai on Wednesday, a RMB 200/mt premium to the most active SHFE 1503 lead contract. Traded prices were RMB 12,540/mt for Humon and Shuangyan, and RMB 12,590/mt for Chengyuan. Smelters sold at firm prices as lead remained in tight supply. Traders bought only as needed against recent volatile lead prices. Lead-acid battery producers were unwilling to buy against mounting finished-goods inventories and cash shortfalls.