SHANGHAI, Apr. 28 (SMM) – Last week, Low-end SHFE prices edged up slightly, but lacked strong upward momentum. SHFE 1207 lead contract became the most actively traded contract last week. With only three trading days in coming week due to the May Day holiday, SHFE 1207 lead contract prices should move between RMB 15,650-15,850/mt.
Lead prices in domestic spot markets were weak last week due to soft demand from lead-acid battery producers. Stock replenishment was limited despite the upcoming May Day holiday. Smelters maintained normal sales with traded prices mainly between RMB 15,550-15,700/mt. In the coming week, lead prices may move narrowly since downstream buyers will only purchase on an as-needed basis due to sluggish orders. Post-holiday consumption will not likely improve and major enterprises are expected to purchase directly from smelters. Transactions between dealers should also be limited due to narrowing profits, with traded prices expected between RMB 15,550-15,750/mt.