SHANGHAI, Nov. 21 (SMM) – Last week, SHFE lead prices fluctuated narrowly between RMB 15,200-15,500/mt influenced by LME lead price movements, with support at the 10-day moving average. On Wednesday, SHFE 1201 lead contract became the most active SHFE lead contract. With LME lead prices presenting a weak trend, SHFE lead prices are not likely to rise significantly and should move between RMB 15,000-15,600/mt.

In China's domestic lead market, spot lead prices were relatively unchanged, hovering between RMB 15,300-15,400/mt throughout the week. At weekend, spot prices fell to RMB 15,200-15,300/mt along with LME lead prices. For branded lead such as Nanfang and Chihong Zn & Ge, spot premiums over most active SHFE lead contract prices expanded to RMB 80-100/mt. Smelters were cautiously moving goods since market sentiment was turning bullish and only fulfilling long-term contracts or selling at higher prices, while traders were more willing to sell goods due to the expansion of spot premiums over most active SHFE lead contract prices. The electric bike sector was still in a seasonal low-demand period, and prices for e-bikes were cut again last week by 5%-10%. Downstream buyers were not active purchasing since profit margins were narrowing, leaving market transactions modest. However, with supply and demand both weak, the cut in supply by smelters who were reluctant to sell goods at lower prices gave certain support to prices. Lead prices should remain stable between RMB 15,100-15,500/mt.