SHANGHAI, Jun. 3 (SMM) – SHFE 1508 lead opened Tuesday night at RMB 13,190/mt and ended down RMB 15/mt at RMB 13,175/mt due to rising shorts, after touching a high of RMB 13,255/mt.
The contract fluctuated narrowly between RMB 13,180-13,220/mt during Wednesday morning session. But in the afternoon, the most-trading contract finished down RMB 115/mt at RMB 13,075/mt owing to falling LME metals and growing shorts.
In spot market, Nangfang brand quoted a RMB 580/mt premium over SHFE 1508 lead at RMB 13,770-13,790/mt with RMB 13,730/mt for Shuangyan (packed in plastic), RMB 13,450/mt for Shuangyan (packed in iron) and RMB 13,350/mt for older Honglu brand goods.
Spot supply jumped with goods at Nanfang Non-ferrous and Baiyin Non-ferrous flowing into market and more cargo holders were willing to move goods. But downstream increased to buy secondary lead and waited to purchase lead at a lower price, leaving the market quiet.
Quotes were RMB 13,600-13,650/mt for branded goods in Henan, on par with SMM price average. Smelters in Jiangxi started maintenance cycle again recently, which failed to hike local spot supply. In response, spot premium there only dropped slightly against SMM lead price.