SHANGHAI, Aug. 19 (SMM) – SHFE 1510 lead opened Monday evening with a negative gap at RMB 13,310/mt and fell back after touching RMB 13,370/mt, to end at RMB 13,320/mt, up RMB 40/mt. Longs reduced for SHFE 1509 lead and shorts grew for SHFE 1510 lead, boding ill for lead prices.
SHFE lead moved at highs between RMB 13,300-13,350/mt due to exit of shorts after the open of Tuesday trading session. But in the afternoon business, the contract fell back in response to tumbling China’s A-shares and LME lead prices and ended at RMB 13,205/mt, losing RMB 75/mt. Trading volumes were 6,028 lots with positions down 514 to 18,150.
Nanfang brand was offered at RMB 13,340/mt in Shanghai, on par with SHFE 1510 lead prices. Humon, Hanjiang and Jinyuteng brands quoted RMB 13,300-13,310/mt.
Shandong Humon Smelting and Western Mining moved goods out. Even so, market was still short of branded lead. Downstream producers mainly bought under term contract while large producers built some stocks when spot prices were at lows. The rest producers watched from the sidelines.