SHANGHAI, Nov. 5 (SMM) – SHFE 1512 lead gapped lower at RMB 13,005/mt for night trading Tuesday and then ranged between RMB 12,910-13,125/mt with closing prices down RMB 60/mt or 0.46% at RMB 13045/mt. Trading volumes sew a slip of 1,976 to 918 and positions declined 56 to 11,424.
The December-delivery lead in the SHFE opened at RMB 13,060/mt and moved higher to RMB 13,165/mt due to expectation for more inflation about China’s 13th five-year plan. Later, the contract surged above the 5-day moving average answering to Chinese stock market and closed at RMB 13,20/mt, up by RMB 100/mt or 0.76%. Trading volumes were up 576 to 3,470 lots but positions declined 144 to 11,336.
In Shanghai, Chengyuan and Nanfang brand prices were largely at RMB 13,230-13,240/mt, RMB 80/mt above SHFE 1512 lead. Traded prices were RMB 13,220-13,250/mt for Mengzi brand with several trades made at RMB 13,220/mt, versus RMB 13,200-13,210/mt for Humon brand.
Only Shandong Humon Smelting moved goods to market and market activities declined markedly. Few traders gave their price offers. Downstream buyers stayed quiet. Markets saw light transactions.