SMM Lead Market Daily Review (2015-2-11)

SHANGHAI, Feb. 12 (SMM) – Lead for April delivery on the Shanghai Futures Exchange, the most active contract, started at RMB 12,500/mt and then trended lower to close at RMB 12,465/mt in Tuesday’s night session.

On Wednesday, SHFE lead initially fell to RMB 12,370/mt, but later rebounded slightly to finish down RMB 95/mt, or 0.76% at RMB 12,435/mt. Trading volumes for the most active contract added 2,418 lots to 4,080 lots, while positions gained 258 to 16,768.

Supplies from Chihong Zn & Ge traded at RMB 12,490-12,500/mt in Shanghai on Wednesday, on par with the most active SHFE 1503 lead contract. Traded prices were some RMB 12,470/mt for Chengyuan and Nanfang, a RMB 30/mt discount to the most active contract. Smelters reported few sales due to anemic demand and low availability of freight transportation, while most of traders entered into settlement process. Some downstream producers built input inventories lightly, while others delayed purchases on a bearish outlook toward lead prices on Wednesday.