SHFE Lead Fluctuate within a Narrow Range Today and Close down Slightly

SHANGHAI, May 5 (SMM) - SHFE 2306 lead opened at 15,320 yuan/mt today, once dropping to 15,275 yuan/mt. Then the contract climbed somewhat following the LME lead. At last, it closed at 15,345 yuan/mt, down 0.13%. The open interest fell 3,480 lots to 62,478 lots from the previous trading day, and the trading volume dipped 8,024 lots to 50,906 lots.

SHFE lead declined after growing today. This, coupled with the increase in market supply, forced many smelters to quote the spots picked up at factories at huge discounts. Spot supply in Jiangsu, Zhejiang and Shanghai markets stood low, and thus the holders quoted their cargo at small premiums. However, the downstream enterprises purchased on rigid demand and preferred low-priced sources. The spot lead trades remained slack today. The most-traded SHFE lead contract will move rangebound in the short term on a stable macro front.