SMM Lead Price Forecast (Nov.7-11)

Shanghai, Nov. 7 (SMM)- Last week, SHFE lead prices moved between RMB 15,100-15,500/mt, with support at the 30-day moving averages. Global financial markets will remain volatile in the short term, and SHFE lead prices will fluctuate in the RMB 14,850-15,700/mt range in the coming week.

In domestic lead spot markets, prices fell from RMB 15,400/mt in earlier week trading, to RMB 15,200/mt at the week’s end. Spot lead prices rapidly rallied to around RMB 15,450/mt at the close of the week as SHFE lead prices stopped falling, becoming the only metal with price increases over this past week, and with SMMI.Pb up by 0.33%. With cash flow problems easing, smelters were less interested in moving goods. Meanwhile, downstream producers and traders were purchasing on an as-needed basis due to the lack of a clear market direction, keeping transactions modest.

In China’s domestic lead spot market, smelters, traders, and downstream enterprises were all taking a wait-and-see attitude. Smelters become more cautions towards sales as their cash flow problems eased and since downstream demand remains weak. As a result, domestic spot lead prices will remain weak, with prices expected between RMB 15,000-15,400/mt.