SHANGHAI, May 28 (SMM) – SHFE 1507 lead opened at RMB 13,260/mt and ended at RMB 13,330/mt Wednesday night. The contract fluctuated between RMB 13,330-13,370/mt Thursday morning and finished the day at RMB 13,355/mt, up RMB 80/mt. Far-month SHFE lead contracts features falling longs and growing shorts, meaning investors are not optimistic about far-month contracts.
Hanjiang and Shuangyan brands traded RMB 500/mt higher than SHFE 1507 lead at RMB 13,850/mt in domestic spot market, with Shuangyan (packed in iron) and Honglu brands at RMB 13,500-13,550/mt.
No goods at smelters flowed into market, which instead was filled with traders’ older stocks. Lead futures advanced on Thursday, but weak demand pressed some cargo holders to cut spot prices. However, that failed to stimulate trades with one possible reason of tight liquidity at the end of month. Spot supply in Henan rose while demand cut with branded goods settling at RMB 13,800-13,850/mt, versus RMB 13,360-13,440/mt in Guangdong.