SHANGHAI, Sept. 10 (SMM) – SHFE 1511 lead moved on the strong side on Wednesday in response to optimistic sentiment in market. The contract moved in a tight range of RMB 13,310-13,370/mt and finally closed up RMB 125/mt at RMB 13,320/mt. Trading volumes surged to 7,502 lots but positions dropped 8 to 15,040.
Market sentiment was boosted by growing expectation for demand in China and this allowed commodity prices to jump on Wednesday. SHFE copper gained more than 4%.
Early Wednesday, Nanfang brand was offered at RMB 13,400/mt and then the price grew to RMB 13,450/mt, RMB 100/mt above SHFE 1511 lead. Humon and Hanjiang brands initially quoted at RMB 13,430/mt but later the prices were lowered to RMB 13,410-13,420/mt, versus RMB 13,410/mt for Mengzi brand and RMB 13,380/mt for Shuangyan brand (packed in iron).
Shandong Humon Smelting and West Mining shipped goods out. Meanwhile, trades increased purchase as they refused to move hedged goods out due to a slid in spot premiums, resulting from a large rise in SHFE lead on Wednesday. As a result, market supply was limited. On the other hand, downstream buyers still watched from the sidelines following a surge in SHFE lead.