SHANGHAI, Jun. 4 (SMM) – Last week, SHFE lead prices, influenced by LME lead prices and Chinese stock markets, fell from RMB 15,300/mt to RMB 14,900/mt, but later gained support at RMB 15,000/mt. SHFE lead prices are expected to be between RMB 15,000-15,260/mt this week.
In China’s domestic spot markets, lead prices were relatively resilient despite continuous declines in SHFE lead prices. Prices for branded lead remained between RMB 15,150-15,250/mt, with premiums over the most active SHFE lead contract price expanding to RMB 120/mt from RMB 50/mt. Prices for Hengchang and brands from the Gejiu region remained relatively low between RMB 15,000-15,100/mt. Smelters were not willing to sell due to low profits, while some downstream enterprises continued to purchase based solely on orders, keeping transactions modest. With financial pressures easing at the start of a new month, smelters in domestic spot markets will be reluctant to move goods if lead prices continue to fall. Downstream enterprises should continue to purchase as needed, and a rebound in transactions is not expected in the near-term, with traded prices expected between RMB 15,050-15,250/mt.