SHANGHAI, Nov. 18 (SMM) – SHFE 1601 lead opened lower at RMB 12,495/mt and closed down RMB 225/mt or 1.78% at RMB 12,395/mt with the session low at RMB 12,355/mt due to growing shorts, a 4-month low. Trading volume fell 1,916 to 3,802 lots while positions were up 232 to 12,724.
SHFE 1601 lead lurched down to RMB 12,125/mt during Monday trading session due
to sell-offs by shorts and closed at RMB 12,260/mt, down by RMB 360/mt or 2.85%.
Trading volumes jumped 7,046 to 12,764 lots with positions up 464 to 12,956.
SHFE 1601 lead should move on the weak side in the near term on the back of entering of shorts and strong dollar.
In Shanghai market, Mengzi brand quoted at RMB 12,700-12,800/mt on Tuesday, RMB 500-600/mt above SHFE 1601 lead. Mainstream traded prices were RMB 12,700-12,750/mt for Humon brand, versus RMB 12,700-12,730/mt for Hanjiang brand and RMB 12,700-12,720/mt for Jinsha brand. SMM #1 lead tumbled RMB 225/mt on Tuesday. Price offers were mixed initially between RMB 12,700-13,000/mt but later prices were mainly at RMB 12,700-12,800/mt.
Shandong Humon Smelting and West Mining continued to contribute to market supply. Besides, traders shipped hedged goods to market. Downstream buyers watched from sidelines after price slump, leaving overall transactions softening.