SHANGHAI, May 5 (SMM) – The most active contract moved higher to RMB 13,895/mt as poor China manufacturing PMI added support to expectation for PBOC’s easing policy. The June-delivery lead ended the day at RMB 13,880/mt, up RMB 85/mt, gaining 0.62%. Trading volumes totaled 2,916 lots and positions dropped 50 to 13,845. SHFE lead is expected to increase further on strong bull.
In spot lead market, Nanfang’s goods traded at RMB 13,980/mt, and traded prices were Humon and Tongguan brands were RMB 13,950-13,990/mt. Shuangyan and Qinyuan lead quoted at RMB 13,920-13,930/mt. Old goods of Honglu brand were offered at discount of RMB 40/mt to SHFE 1506 lead contract. Goods availability was limited in Shanghai and traders were holding low inventories and thus quoted high. Downstream buyers watched from the sidelines against high prices. Quotations in Henan varied largely, with high-end prices offered at a RMB 200/mt premium to SMM #1 lead. However, transactions were few. SMM #1 lead prices have climbed more than 12% since April 1, from RMB 12,400/mt to RMB 13,900/mt.