SMM Lead Price Forecast (Aug. 29-Sept. 2)

SHANGHAI, Aug. 29 (SMM) – Last week, SHFE 1110 lead contract prices rebounded above RMB 16,500/mt, then moving mainly between RMB 16,500-16,800/mt. SHFE lead markets staged no major breakthroughs due to strong resistance. SHFE lead prices will fluctuate in the RMB 16,400-17,000/mt range this week. 

In China’s domestic spot market, prices for well-known branded lead were between RMB 16,200-16,300/mt, with spot discounts over SHFE 1110 lead contracts between negative RMB 350-420/mt. Offers for other brands were generally in the RMB 16,120-16,200/mt range. With heavy cash flow pressures at the month’s end, domestic lead smelters were more willing to move goods, helping increase market supply. Downstream producers, however, remained wary of purchases, as they replenished goods previously when prices fell below RMB 16,000/mt. Spot lead prices will fluctuate in the RMB 16,100-16,500/mt range this week, with discounts between negative RMB 350-400/mt.