SHANGHAI, Jun. 19 (SMM) – SHFE 1508 lead opened Wednesday evening session at RMB 12,750/mt and hovered between RMB 12,740-12,760/mt, to finish up RMB 15/mt at RMB 12,755/mt.
The contract rebounded to RMB 12,990/mt on Thursday and closed the day at RMB 12,985/mt, up RMB 245/mt or 1.92%. Trading volumes rose 2,314 to 6,972 lots whereas positions dropped 474 to 13,550.
Spot lead premiums narrowed to RMB 400/mt to SHFE 1508 lead for Tongguan and Chengyuan brands with the price at RMB 13,350/mt, versus RMB 13,200/mt for Shuangyan (packed in iron) brand.
Lead smelters shipped slight goods out June 18 and market was mainly filled with shipments from smelters June 17. SHFE 1508 lead surged RMB 200/mt yesterday, but downstream buyers did not source goods aggressively owing to weak orders. Some small and medium smelters will start a vacation before the Dragon Boat Festival and large smelters had little demand for building stocks. Trades thus were poor.
Henan’s branded lead was RMB 50-100/mt lower than SMM #1 lead average price. Some hedged goods flowed into market in Guangdong, increasing local lead availability and the prices quoted at RMB 13,150-13,300/mt. Deals failed to pick up in Hunan and Jiangxi.