SHANGHAI, May 19 (SMM) – On Friday, SHFE 1707 lead opened at RMB 15,440/mt and then advanced to RMB 15,535/mt. The contract later dropped with positions opening by shorts and then fluctuated narrowly at RMB 15,350-15,400/mt. During the afternoon trading, SHFE 1707 lead rebounded to RMB 15,400-15,490/mt thanks to leaving of shorts, and closed at RMB 15,385/mt, down 195/mt or 1.25%. Trading volumes increased 4,282 to 60,680 lots and positions fell 1,776 to 39,936. SHFE 1707 lead rallied from lows to RMB 15,500/mt on Friday, but was still weighed by the moving average.
The contract will fluctuate at lows for the foreseeable future with sluggish trading in spot market and downward pressure. Attention should be on price gap between SHFE 1706 lead and SHFE 1707 lead.