SHANGHAI, Sept. 17 (SMM) – SHFE 1511 lead started at RMB 13,210/mt during Tuesday evening session and then followed LME lead up, to close at a high of RMB 13,360/mt, up by RMB 130/mt.
SHFE lead lurched down after the open of Wednesday trading session and dipped to RMB 13,265/mt. However, the contract bounced back to RMB 13,345/mt thanks to a rally of 4.89% in Chinese stock market, to end at RMB 13,320/mt, rising RMB 90/mt. Trading volumes totaled 3,944 lots and positions fell 604 to 12,866 with shorts exiting market.
On Wednesday, Nanfang brand was offered at RMB 13,400-13,420/mt in Shanghai, RMB 100/mt above SHFE 1511 lead, versus RMB 13,380-13,390/mt for Humon and Mengzi brand.
Shandong Humon Smelting and Hechi Nanfang Nonferrous Metals Group shipped goods out. Traders were unwilling to ship goods out due to narrowing spot premiums. As a result, spot supply was tight in market. Without cheap goods, downstream buyers purchased on need, leaving trades muted.