SHANGHAI, May 14 (SMM) – Last week, SHFE lead prices, influenced by LME lead prices and falling domestic stock markets, fell to between RMB 15,600-15,710/mt. This week, SHFE lead prices are expected to be between RMB 15,600-15,850/mt.
Last week, China’s domestic spot markets were quiet, with spot discounts narrowing from RMB 100/mt to RMB 50/mt. Dealers were actively depleting stocks, but transactions were limited due to weak demand. Some lead-acid battery producers even began selling existing lead ingot stocks since these raw materials were not used up fulfilling long-term battery contracts. Large amounts of lead from the Gejiu region also flowed into the Shanghai market, lowering prices for lead from Gejiu to RMB 15,400/mt. This week, soft demand in China’s spot markets will not likely improve in the short term since battery manufacturers are now in seasonal low-demand period. Spot prices should be between RMB 15,500-15,700/mt with discounts over SHFE lead price expanding.