SHANGHAI, Dec. 8 (SMM) – SHFE 1602 lead once lurched up to RMB 13,025/mt after opening Monday night trading session at RMB 13,000/mt. Later, the February-delivery lead contract traced LME lead down and closed up RMB 25/mt or 0.19% at RMB 12,915/mt.
SHFE lead resisted declines on Tuesday. The contract hovered around RMB 12,900/mt and later returned above RMB 13,000/mt. However, the contract fell back in the afternoon business session and ended at RMB 12,920/mt with a gain of RMB 30/mt or 0.23%. Trading volumes were up 1,570 to 9,978 lots and positions increased 590 to 15,982.
China’s exports declined 6.8% YoY in November and imports slipped 8.7% YoY, falling for 5 and 13 months in a row, respectively. Chinese yuan went down after the release of those data.
Position opening by longs claims a large number, mirroring longs’ strong confidence. But weakness in other metals will likely drag down lead prices. As such, SHFE 1602 lead will suffer pressure at RMB 13,000/mt tonight.