Lead Prices to Face Downside Risk in Late March

SHANGHAI, Mar 8 (SMM) - SHFE lead prices flatlined in February after a drastic fall in January. As of February 28, the most-traded SHFE lead contract closed at 15,350 yuan/mt, up 0.92% from the end of January.

Looking into March, lead supply will become more abundant with the ramp-up of new primary and secondary lead capacity. Lead-acid battery market has entered the peak season in March, but consumption may dwindle in late March.

Low inventory and strong consumption will support lead prices in the first half of March. However, lead prices could face downward pressure in late March amid growing supply and falling demand.