SHANGHAI, Feb 13 (SMM) – Last week, SHFE lead prices, influenced by LME lead price movements, moved between RMB 16,040-16,240/mt with strong support at RMB 16,000/mt. SHFE lead prices are expected to move between RMB 16,000-16,400/mt in the coming week.
In China's domestic spot markets, smelters were active selling inventories built during the Chinese New Year holiday, but downstream demand was still relatively soft as production at SMEs was slow to recover to pre-holiday levels. Transactions in spot markets were modest, with prices for branded lead at RMB 15,950-16,100/mt, with discounts of RMB 150/mt against the most active SHFE lead contract price. Prices for lead from Gejiu were between RMB 15,800-15,900/mt. Transactions may improve in the coming week as downstream enterprises resume production and since smelters are now selling goods normally. With the approach of the delivery day, spot discounts against SHFE lead prices tend to narrow, with spot prices expected at RMB 15,900-16,250/mt in the coming week.