SMM Lead Market Daily Review (2015-11-11)

SHANGHAI, Nov. 12 (SMM) – SHFE 1601 lead gapped lower at RMB 12,735/mt for night trading Tuesday and once dived to RMB 12,570/mt with shorts gathering strength. The contract posted a modest rally before ending at RMB 12,690/mt with a loss of RMB115/mt or 0.9%.

SHFE lead fluctuated between RMB 12,620-12,720/mt during Wednesday trading session and closed the day at RMB 12,660/mt, down by RMB 145/mt or 1.13%. Trading volumes were up 72 to 3,744 lots whilst positions increased 216 to 10,684.

SHFE1601 lead is expected to head for losses as markets hold pessimistic outlook for lead market.

On Wednesday, Jinsha brand traded at premiums of RMB 320/mt above SHFE 1601 lead at RMB 13,020/mt in Shanghai and no trades were reportedly done. Traded prices were RMB 12,980/mt for Mengzi brand with no deals made. Nanfang and Chengyuan brands quoted at RMB 12,960-12,980/mt and RMB 12,950-12,960/mt for Humon brand.

Shandong Humon Smelting contributed to market supply, leaving overall supply unchanged. Spot prices slipped quickly. Downstream buyers watched from the sidelines.