SHFE #1 Lead Price Movement on January 17

The power rationing in Yunnan, Henan, and Hunan since July-August and the power rationing in Jiangxi and Guangxi in September are undoubtedly the current hot spots. According to a recent SMM survey, the power rationing in Jiangsu, Guangdong and other regions in China has continued. Since late September, the social inventory of lead ingots has declined due to the combined effects of losses, power rationing and environmental protection.

LME lead will fluctuate at highs between USD 2,460-2,490/mt today.

Motive battery supply is tight in China's market and will ease in mid and late June.

Average operating rate at surveyed 51 Chinese lead-acid battery producers was 62.12% in March, up 3.35 percentage points MoM but down 4.41 percentage points YoY.

SHFE 1702 lead started at RMB 18,800/mt and finally ended at RMB 18,780/mt, up RMB 315/mt or 1.71%.

The lead prices in China may take a hit in the near future due to pile-up in stocks, Shanghai Metals Market expects.

Operating rates at lead producers picked up in Yunnan’s Gejiu who halted operation previously because of profitable lead prices and TCs.

LME lead will trade higher at USD 1,690-1,725/mt during Asian trading hours Tuesday owing to position opening by longs.

Spot lead market is plagued by transport disruption recently in China’s Beijing, Liaoning, Henan and Hebei, hurt by rains, snows and fogs in those regions, SMM learns.

Motive batteries in China are expected to grow 15-30 yuan due to the upcoming consumption tax.