SMM Lead Market Daily Review (2015-3-10)

SHANGHAI, Mar. 11 (SMM) – Lead for May delivery on the Shanghai Futures Exchange, the most active contract, opened at RMB 12,245/mt and then fluctuated between RMB 12,270-12,300/mt before ending up RMB 40/mt at RMB 12,270/mt in Monday’s night session.

On Tuesday, SHFE lead initially tested resistance at RMB 12,300/mt, but fell to RMB 12,700/mt in the afternoon trading session before ending up RMB 45/mt, or 0.37% at RMB 12,275/mt. Trading volumes for the most active contract shrank 1,024 lots to 3,154 lots, while positions gained 842 to 16,794.

Chihong Zn & Ge was quoted at RMB 12,420-12,430/mt, a RMB 120-130/mt premium to the most active SHFE 1505 lead contract, but was barely traded in Shanghai on Tuesday. Traded prices were RMB 12,350-12,380/mt for Nanfang and Chengyuan, and RMB 12,320/mt for Humon. Qinxin was sold on par with the most active contract. Chihong Zn & Ge reported no sales, while Humon and Nanfang conducted deliveries. Lead-acid battery producers went bargain-hunting in light volumes. Spot lead prices were some RMB 12,250/mt in Henan, with trading better than in Shanghai.