SHANGHAI, Jul. 27 (SMM) – SHFE 1510 lead started at RMB 12,735/mt during Thursday evening session and followed LME lead down after reaching RMB 12,800/m, to close at a low of RMB 12,615/mt, down RMB 120/mt. Trading volumes were only 506 lots.
On Friday, SHFE 1510 lead touched a high of RMB 12,715/mt. Base metals extended falls as a whole. China’s manufacturing PMI for July came in at 48.2, hitting a 15-month low. China’s A-shares dropped at noon. Shorts entered market at highs and thus SHFE lead ended at RMB
12,620/mt, down RMB 115/mt. Trading volumes totaled 1,976 lots and positions grew 816 to 16,194.
In Shanghai market, Humon brand was offered RMB 420/mt higher than SHFE 1510 lead at RMB 13,100-13,130/mt on July 24. Yunxi Smelter quoted RMB 80/mt higher than SHFE 1508 lead, versus RMB 13,000/mt for Honglu brand (packed in iron).
Lead prices plunged July 24 and thus some lead smelters were resultant to sell. Only Shandong Humon Smelting Co. moved goods. As a result, spot availability was tight in market and few offers were given. High prices and tight supply curbed downstream buying interest. Deals for Honglu brand (packed in iron) were active but as a whole market saw light trades.