SHANGHAI, May 7 (SMM) – Last week, SHFE lead prices, influenced by the gains in LME lead prices during the May Day holiday, rose as high as RMB 15,950/mt after opening Wednesday, but met resistance and fell back to RMB 15,820/mt. SHFE lead prices are expected to move in the RMB 15,700-16,000/mt range this week.
Last week, China’s domestic spot prices remained between RMB 15,620-15,800/mt, with discounts of RMB 100/mt over the most active SHFE lead contract price. Trading was light at the higher prices, and downstream buyers only purchased moderately when prices fell. Most smelters reported poor transactions. Demand will not likely improve before the next peak-demand season. Downstream buyers should still purchase on an as-needed basis this week, while smelters will likely maintain normal sales with traded prices expected between RMB 15,650-15,850/mt.