SMM Lead Price Forecast (Feb. 27-Mar. 2)

SHANGHAI, Feb. 27 (SMM) – Last week, SHFE lead prices rose to RMB 15,900/mt mid-week from RMB 15,600/mt earlier and remained above the 10-day moving average. SHFE lead prices are expected to move around the RMB 16,000/mt mark this coming week.

In China’s domestic spot markets, lead prices rose gradually from RMB 15,500/mt to RMB 15,800/mt last week, with spot discounts over SHFE lead prices between RMB 50-100/mt. Quotations for well-known brands were occasionally close to SHFE lead prices, and lead smelters were cautiously moving goods since they had less inventory pressure and since they expected lead prices to increase. Meanwhile, production at downstream enterprises was still in the process of returning to normal, so enterprises were more willing to purchase early last week, but later buying interest fell in mid-week as prices rose. Traded prices in spot markets should be between RMB 15,850-16,100/mt this coming week.