SHANGHAI, Jul. 2 (SMM) – SHFE lead prices fell 3% to a low of RMB 14,405/mt last week, down from RMB 14,780/mt. SHFE 1209 lead contract became the most actively traded contract last Thursday. SHFE lead prices are expected to stabilize between RMB 14,500-14,850/mt this week.
Spot lead prices in China’s domestic markets fell from RMB 14,900/mt to RMB 14,600/mt, a drop of RMB 300/mt, with spot premiums over the most active SHFE lead price expanding to RMB 150/mt, up from RMB 100/mt a week ago. Although spot lead prices showed some resilience, weak demand gave no support to lead prices. Buying interest improved slightly due to lower prices, but smelters still held offers firm despite financial pressure, leaving transactions modest. Spot lead prices in domestic markets will resist declines this week, but will met resistance to rise above RMB 15,000/mt. If lead prices remain below RMB 15,000/mt, smelters will be more reluctant to move goods as financial pressures ease in early July. Buying interest from downstream enterprises may also remain depressed by poor orders.