SHANGHAI, May 20 (SMM) – The July-delivery lead contract price in SHFE climbed to RMB 13,280/mt on Wednesday morning as short positions closed. But in the midday business, the contract tumbled on growing US dollar, to touch day’s low of RMB 13,170/mt. The metal finally ended down RMB 205/mt at RMB 13,180/mt.
In spot market, Tongguan brand was offered a RMB 600/mt premium over SHFE 1507 lead at RMB 13,850/mt. Shuangyan (packed in iron) brand traded at RMB 13,690/mt and Honglu brand RMB 13,350/mt. Few branded lead entered market and lead smelters have received some orders with modest stocks. Shuangyan (packed in iron) and Honglu brands filled cargo holders’ inventories. High price and tight supply dampened downstream purchase. Branded lead traded at RMB 13,800/mt in Henan, versus RMB 13,400/mt in Guangdong. Some news reported that big price gap between Shanghai and Guangdong market has caused some goods to shift from Guangdong to Shanghai.