SHANGHAI, Jan. 16 (SMM) – Last week, SHFE lead prices moved higher due to rising Chinese stock markets and rising LME lead prices, presenting a weekly growth of almost 2%. Influenced by LME lead prices, SHFE lead prices should move between RMB 15,220-15,450/mt in the coming week.
In China’s domestic spot markets, prices remained between RMB 15,150-15,250/mt early last week, but rose by RMB 100/mt later in the week as SHFE lead prices moved higher. Traded prices were between RMB 15,250-15,350/mt, but a bullish post-holiday market sentiment caused smelters to limit sales. Downstream buyers were not actively replenishing stocks and began the holiday early given poor sales. In this context, transactions were generally quiet. This coming week, smelters are holding goods due to a growing bullish outlook. Meanwhile the weak downstream consumption and the cash flows problems before the Chinese New Year holiday will limit stock replenishments. As a result, spot lead prices will not likely rise in the coming week, with domestic spot prices expected at RMB 15,200-15,400/mt.