SHANGHAI, May 16 (SMM) – On Tuesday, SHFE 1706 lead started at RMB 15,955/mt and then plunged below the previous lowest level to RMB 15,500/mt, with positions opening by shorts. The contract later rebounded to RMB 15,750/mt after shorts took profits and dropped again as longs left the market, and stabilized at RMB 15,650-15,700/mt. SHFE 1706 lead ended at RMB 15,715/mt, down RMB 250/mt or 1.57%. Trading volumes increased 7,520 to 69,968 lots and positions fell 184 to 42,310. SHFE 1706 lead hit the year’s worst on Tuesday.
The contract, facing strong downward pressure, will keep falling territory in a short term with weak fundamentals.