SHANGHAI, Jul. 8 (SMM) – China’s A-shares extended declines and some CSI 500 index futures fell to daily downward limit. Iron ore and rebar futures also reached daily downwards limit after opening Tuesday morning session. Those factors combined to throw markets into panic.
SHFE 1508 lead rose to RMB 12,880/mt during Tuesday trading session and then dropped due to the spread of pessimistic sentiment, to end down RMB 105/mt at RMB 12,690/mt. Trading volumes fell 105 to 2,420 lots and positions declined 588 to 12,234.
In Shanghai market, Nanfang brand quoted RMB 13,120-13,130/mt, RMB 280/mt higher than SHFE 1508 lead, versus RMB 13,040/mt for Jiangtong brand and RMB 13,000/mt for Shuangyan brand (packed in iron).
Smelters shipped a small number of goods out and most goods moved out July 6 have been digested by market. Consequently, lead availability declined July 7 in market. Downstream producers bought for immediate requirements as usual on Tuesday. Narrowing price gap between SMM #1 lead and secondary lead turned more buyers to the former, but low operating rate at downstream makers and cheaper goods in Henan curbed trading in Shanghai market.