SHANGHAI, Nov. 18 (SMM) -- Heavy snowfalls have started to hit Henan, Hebei and Shandong provinces since November 11 – 12th, and most of highway transportation networks have been closed as a result. Market players in domestic lead markets have showed great attention to the impact on transportation, raw material purchases, natural gas supply and deliveries of lead ingot to downstream producers, as areas hit by heavy snowfalls are China's major lead production bases.
Those concerns boosted the months-long weak domestic lead markets. The low lead price of RMB 15,300-15,400/mt disappeared in domestic lead markets along with rising LME lead prices, with downstream inquires growing on Monday (November 16th), and helping trading price up to RMB 15,600/mt.
So far, heavy snows in the northern part of China have become smaller. LME lead prices retreated after previous gains, as high inventories and weak consumption re-emerged to depress lead prices. In this context, domestic lead prices met great resistance at RMB 15,700/mt.
SMM believes impact from bad weather will continue to affect domestic lead markets in the coming 2-3 days, to wait for a clear market direction.
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