Lead Prices Fall after Opening and Price Spread between Primary Lead and Secondary Refined Lead Remains Low

SHANGHAI, Jan 30 (SMM) - SHFE 2303 lead contract opened high today in light of the rising LME lead prices during the Chinese New Year holiday, but then fell and closed at 15,235 yuan/mt as of noon, down 0.03%. Open interest increased 1,028 lots to 79,650 lots. Open interest of SHFE 2302 lead contact decreased 1,972 lots to 11,115 lots.

In the secondary lead spot market, the delivery prices offered by secondary lead smelters increased in the early trading period, and the overall discount was around 50 yuan/mt against SMM 1# lead ingots. Some secondary lead smelters intended to hold the prices firm and quoted flat over SMM 1# lead ingots. However, there are still some secondary lead smelters in the market that have not resumed work, hence the market transaction has improved only slightly compared with before the holiday.