SHANGHAI, Mar. 12 (SMM) – Last week, SHFE lead prices fell from RMB 16,150/mt to below RMB 16,000/mt, falling as low as RMB 15,620/m before increasing slightly with rising LME lead prices in mid-week trading. Prices still closed the week down below RMB 16,000/mt, however. SHFE lead prices are expected to move between RMB 15,800-16,150/mt in the coming week.
In China’s spot lead markets, prices for well-known brands fell on Wednesday to RMB 15,650/mt, down from RMB 15,950/mt earlier in the week. Spot discounts over the most active SHFE lead contract lead price continued to fall from RMB 200-250/mt to RMB 0/mt. Lead smelters were under less financial pressure and as a result, were not willing to move goods, believing instead that lead prices would not decline significantly. Lead-acid battery producers were active buying goods at lower prices, so transactions improved moderately. This coming week, lead supply will gradually fall due to suspended output at smelters near the heavy metal pollution incidents, so spot prices may stabilize. Selling interest among smelters may improve and downstream buyers are expected to purchase on an as-needed basis. Spot prices are expected to be between RMB 15,700-16,000/mt, with discounts over the most active SHFE lead contract price continuing to narrow.