SMM Lead Market Daily Review (2015-2-10)

SHANGHAI, Feb. 11 (SMM) – Lead for April delivery on the Shanghai Futures Exchange, the most active contract edged down RMB 5/mt in Monday’s night session, Trading volumes for the SHFE 1504 lead contract totaled 856 lots, while positions decreased 20 to 16,686.

China’s CPI rose only 0.8%, while PPI fell 4.3% in January, exacerbating deflationary risks. SHFE lead started at RMB 12,535/mt and then fell to RMB 12,520-12,530/mt before ending down RMB 20/mt at RMB 12,520/mt on Tuesday. Trading volumes for the most active contract totaled 1,662 lots, while positions shed 196 to 16,510.

Supplies from Chihong Zn & Ge, Chengyuan and Shuangyan traded at RMB 12,510-12,530/mt in Shanghai on Tuesday, on par with the most active SHFE 1504 lead contract. Traded prices were RMB 12,500-12,510/mt with few transactions reported. Some downstream producers continued to build input inventories, leading to high trading volumes for Chengyuan.