SMM Lead Market Daily Review (2015-9-23)

SHANGHAI, Sept. 24 (SMM) – SHFE 1511 lead gapped lower at RMB 13,060/mt for night trading Tuesday in response to LME lead. Then, the contract fluctuated between RMB 13,040-13,090/mt, to end at RMB 13,055/mt, down by RMB 80/mt.

SHFE 1511 lead drifted higher to RMB 13,200/mt with a rally in base metals as SHFE zinc rebounded following 3 consecutive days’ fall and finally ended at RMB 13,185/mt, up by RMB 25/mt. Trading volumes totaled 7,170 lots and positions fell 244 to 12,882.

In Shanghai market, Nanfang brand was offered RMB 230-270/mt above SHFE 1511 lead at RMB 13,310-13,350/mt on Wednesday. Hanjiang and Mengzi brands traded at RMB 13,330/mt, versus RMB 13,270/mt for Ximai brand.

Only Hechi Nanfang Nonferrous Metals Group shipped out a small portion of goods. Traders moved hedged goods to market, growing market supply. Downstream producers gradually started pre-holiday stocking. Thus, trading activities improved over Tuesday.