SHANGHAI, May 13 (SMM) - SHFE 1507 lead opened at RMB 13,445/mt Tuesday night and then moved higher to finish at RMB 13,510/mt. The contract moved around RMB 13,500/mt Wednesday morning. The metal moved above the 20-day moving average in the afternoon as China’s April manufacturing output grew 5.9% YoY, up 0.3 percentage point MoM and as April new home sales area climbed 7% versus April 2014, the first rise since early 2014. The July-delivery lead hit day’s high of RMB 13,675/mt and was last up RMB 345/mt or 1.83% at RMB 13,620/mt. Trading volumes dropped 104 to 6,946 lots and positions fell 294 to 15,334.
In spot market, quotes were RMB 13,800-13,830/mt for Tongguan and Nanfang brands, with RMB 300-330/mt premiums over SHFE 1507 lead contract price. Honglu brand traded at RMB 13,500/mt. A small number of Tongguan and Nanfang goods flowed into market. Meanwhile, cargo holders refrained from selling, causing a tight supply in spot market. Downstream producers purchase on need and high spot premium enticed them to mainly buy under term contract.