SMM Lead Market Daily Review (2015-5-5)

SHANGHAI, May 6 (SMM) – The June-delivery lead moved between RMB 13,780-13,850/mt Tuesday and ended the day at RMB 13,800/mt, down RMB 45/mt, off 0.33%. Trading volumes totaled 4,712 lots and positions dropped 262 to 12,918. SHFE 1506 lead is expected to test the 5-day moving average.

In spot lead market, prices remained largely stable. Chengyuan and Nanfang quoted at RMB 13,950-13,980/mt, and Tongguan brand was offered at RMB 13,940-13,950/mt. Some goods of Shuangyan (packed in iron) quoted at RMB 13,930/mt and old goods of Qinyuan brand quoted at a RMB 20/mt premium to SHFE 1506 lead contract, Goods of Honglu brand stored previously were offered at a RMB 40/mt discount to SHFE 1506 lead contract. Wait-and-see sentiment loomed, and downstream buyers only bought on needs, waiting for a pullback in prices. Goods from Gejiu region traded at RMB 13,640-13,700/mt in Guangdong. Warehouse warrants were offered at discounts of RMB 110/mt to June-delivery lead.