SHANGHAI, Feb. 20 (SMM) – Last week, SHFE 1204 lead became the most active traded contract, and SHFE lead prices continued falling to a low of RMB 15,530/mt, down from RMB 16,000/mt last week and a loss of 4%. This coming week, SHFE lead prices are expected to move between RMB 15,600-16,000/mt.
In China’s domestic spot markets, prices for branded lead was RMB 15,850-15,900/mt early last week, but fell to RMB 15,600/mt on Thursday due to slumping SHFE lead prices. Purchases from downstream buyers improved as enterprises gradually resumed and as lead prices moved lower. Given the sharp decline in lead prices and lower inventories following heavy sales the previous week, smelters were now cautiously selling goods. Recovering production at downstream enterprises should cause demand to improve. Smelters will become more willing to move goods as lead prices stabilize, so spot prices in the coming week should be between RMB 15,600-15,850/mt.