SHANGHAI, May 22 (SMM) - SHFE 1507 lead surged most among base metals on Friday. In the morning business, the contract dived to RMB 13,300/mt but later reached RMB 13,465/mt as longs entered and shorts exited market, to finish up RMB 180/mt at RMB 13,380/mt, gaining 1.36%.
Quotes were RMB 13,870/mt for Shuangyan (packed in iron) and new Honglu brands, RMB 500/mt higher than SHFE 1507 lead. Old Honglu brands traded at RMB 13,420-13,520/mt. Lead smelters still held back sales with tight supply in spot market. Downstream producers had to increase purchase old goods to need with slight new goods in market. Hence, trades picked up today. Lead in Henan was offered a RMB 200/mt premium over SMM lead. Guangdong goods traded at RMB 13,440-13,580/mt. Supply in Jiangxi and Hunan remained tight. High premiums discouraged traders from buying.