SHANGHAI, Jun. 23 (SMM) – SHFE 1508 lead opened at RMB 12,850/mt during Tuesday trading session. HSBC’s China manufacturing PMI for June were better than forecast, supporting SHFE lead prices. The most trading contract edged up due to rising longs, to finish up RMB 120/mt at RMB 13,080/mt. Trading volumes totaled 3,100 lots and positions increased 118 to 13,032.
China’s high spot premium of about RMB 350/mt still remains despite the weak demand, leaving room open for a rise in SHFE lead prices. Warrants on SHFE are only 17,000 mt, much lower than positions. Though primary lead smelters finish maintenance, their production will be limited by liquidity and losses.