SHANGHAI, Jun. 18 (SMM) – Last week, SHFE lead prices moved between RMB 15,100-15,200/mt on Monday after news of the Spanish bailout and tested RMB 15,000/mt over the rest of the week. SHFE lead prices, influenced by LME lead prices, will edge up in the coming week to between RMB 15,000-15,250/mt.
In China’s domestic spot markets, lead prices remained between RMB 14,950-15,130/mt. Most brands, with the exception of Shenqian and brands from the Gejiu region, were quoted above RMB 15,000/mt due to production costs. Supply from Chihong Zn & Ge was tight due to ongoing repairs. Smelters only sold goods moderately at low lead prices, while purchases from downstream buyers did not improve, leaving transactions relatively flat at last week’s level. Spot premiums should grow with the delivery of SHFE lead contracts, but lead prices are expected to stabilize in the coming week. Smelter’s selling interest should rise slightly, but demand from lead-acid battery producers is not expected to improve. Traded prices in spot lead market should be RMB 15,000-15,200/mt.