SHANGHAI, Jun. 11 (SMM) – SHFE lead prices fell to a low of RMB 14,880/mt early last week due to a lack of clear directions from LME lead prices, but later stabilized between RMB 15,000-15,200/mt with strong support at the 5-day moving average. SHFE lead prices should move between RMB 15,000-15,200/mt this week.
In China’s domestic spot markets, lead prices fell to RMB 14,900/mt under the influence of SHFE lead prices. Downstream enterprises actively purchased at lower prices, but smelters were reluctant to move goods. Selling interest improved later as lead prices returned above RMB 15,000/mt, while buyers then purchased only as needed, leaving transactions muted again. As the Lead-Acid Battery Industry Entrance Requirements shall take effect on July 1, markets expect lead-acid battery prices to increase in mid-June as some small producers will likely be forced to close. Some downstream enterprises are reported to be increasing output, so lead demand may increase. In response, spot lead prices are expected to hover between RMB 15,000-15,250/mt in the coming week.