SHANGHAI, Aug. 13 (SMM) – SHFE 1510 lead outperformed LME lead during Tuesday evening session and this further expanded SMM/LME lead price ratio. SHFE lead started at RMB 13,180/mt and finished RMB 55/mt lower at RMB 13,110/mt with the low-end price at RMB 13,100/mt.

China cut the value of the yuan for a second day, which triggered expectation for China’s reserve ratio cut. This supported base metals on the SHFE. SHFE lead regained Aug. 11’s losses due to rising longs and reducing shorts. The contract finally ended at RMB 13,285/mt, gaining RMB 90/mt. Trading volumes surged to 9,050 lots but positions fell 328 to 18,230.

In Shanghai market, Nanfang brand was offered at RMB 13,310/mt, a premium of RMB 100/mt to SHFE 1510 lead, versus RMB 13,290-13,300/mt for Hanjiang and Humon brands and RMB 13,270-13,280/mt for YT brand.

Few lead smelters moved goods out as LME lead and SHFE lead contracts prices diverged from each other. Downstream buyers noted that SHFE lead contract prices will fall back following LME lead prices. Thus, those buyers showed little interest on Aug. 12.