SHANGHAI, Dec. 8 (CBI China)-- After falling below RMB 9,000/mt, domestic traded prices of lead were looking for solid support as they fell to RMB 8,000/mt. The decline was due to falling LME lead prices and sluggish domestic demand during November. As market confidence weakened, a large number of lead smetlers with capacity less than 100 kt/yr halted production. However, most smelters reduced output of crude lead smelting, while refined lead production was relatively flexible. Smelters with capacity greater than 100 kt/yr maintained market share, so the overall cuts in refined lead production during November were greater than expected.
Prices for domestic lead were RMB 8,000/mt after experiencing two months of declines. Recent positive news has helped stabilize prices and producers of lead-acid storage batteries are willing to accept the RMB 8,000/mt prices level, reinforcing the CBI’s survey result which reported 85% of smelters were confident lead prices will find support at this level.
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