SHANGHAI, Dec. 26 (SMM) – Last week, SHFE lead prices, influenced by LME lead prices, moved around the 5-day moving average between RMB 15,100-15,200/mt, with trading volumes and positions basically unchanged. Weak domestic stock markets in China will cause SHFE lead prices to move between RMB 15,100-15,400/mt this coming week.
In China’s domestic spot markets, prices remained relatively stable and transactions were modest last week. Traded prices for well-known brands, including Nanfang and Chihong Ge & Zn, were between RMB 15,200-15,270/mt. Other brands, such as lead from Gejiu, were traded at RMB 15,150-15,180/mt. Smelters were more willing to sell goods due to financial pressure, but downstream demand was weak and most buyers only purchased on as-needed basis. Low selling interest among smelters should ease during this last trading week of 2011 due to either financial pressures or inventory costs. Downstream buyers will likely continue purchasing on as-needed basis. Goods supply will increase, leading to more transactions at lower prices. Traded prices should be between RMB 15,150-15,300/mt.