SHANGHAI, Apr. 24 (SMM) – HSBC’s China manufacturing PMI for April released Thursday was 49.2, lower than the expectation 49.4, pushing the June delivery lead down to RMB 13,450/mt. Later, SHFE 1506 lead rebounded as some longs entered the market and as tight supply remained tight in China’s spot lead market, to RMB 13,500/mt and closed the day at RMB 13,490/mt, down RMB 140/mt. Positions of June, July and August delivery lead contracts all increased. But the SHFE lead for July and August delivery suffered selling pressures.
In spot lead market, Humon offered RMB 13,550-13,560/mt early Thursday. Later, SHFE lead increased, and Humon, Chengyuan, and Hanjiang brands quoted at RMB 13,580-13,600/mt, a premium of RMB 100/mt to RMB 1506 lead contract. Some traders started moving goods considering high premiums and smelters still held back. Downstream buyers went bargain hunting. Lead prices in Henan were about RMB 13,550/mt. Supply remained tight in Hunan and Jiangxi.