SHANGHAI, Sept. 8 (SMM) – SHFE 1511 lead immediately dropped to RMB 13,250/mt after opening Monday evening session at RMB 13,315/mt. Then the contract grew to RMB13,280-13,300/mt, contributed by rising longs and finally ended at RMB 13,320/mt, losing RMB 20/mt.

SHFE lead fell to RMB 13,260/mt following the open of Tuesday trading session and then moved stably. Nonetheless, after 11:00 am, SHFE lead slid at a faster pace to RMB 13,070/mt. The contract bounced back slightly near session’s end on the back of a rally in Chinese stock market and finished down RMB 210/mt at RMB 13,130/mt. Trading volumes totaled 3,604 lots and positions decreased 1,320 to 12,600.

Spot lead supply increases sharply in Shanghai and Guangdong as lead smelters increase shipment to spot market after China’s 3-day holiday. Traders sell SHFE lead but buy in spot market as they believe that spot lead will slip slower than SHFE lead. Other speculative traders follow those traders to withdrawn. Those factors are behind the sharp fall in SHFE lead prices.