SMM Lead Market Daily Review (2015-6-10)

SHANGHAI, Jun. 11 (SMM) – The August-delivery lead on SHFE opened at RMB 13,200/mt during evening session Tuesday and moved narrowly between RMB 13,200-13,240/mt with SMM/LME lead price ratio of 6.8.

The contract touched an intra-day low of RMB 13,165/mt after opening Wednesday morning session and lurched up with support at the 5-day moving average emerging. The metal moved stably around RMB 13,230/mt and ended the day at RMB 13,225/mt, rising RMB 35/mt.

In domestic market, shortage in Nanfang brand goods pushed their spot premium up to RMB 600/mt over SHFE 1508 lead. Shuangyan (packed in plastic) brand quoted at RMB 13,690-13,700/mt with Shuangyan (packed in iron) and Honglu brands at RMB 13,380-13,400/mt.

Lead smelters held back sales and some delayed to meet orders with goods arriving next week. Downstream producers mainly bought under term contract because of high spot prices, leaving trades muted.

Henan’s smelters were active in selling with price at RMB 13,500-13,600/mt while downstream producers showed little buying interest. Gejiu’s goods traded at RMB 13,380-13,400/mt in Guangdong market with local goods availability falling. Hunan’s goods were offered a discount of RMB 70-100/mt against SMM #1 lead average price.