SHANGHAI, Jul. 23 (SMM) – Last week, SHFE lead prices, under the influence of LME lead prices and the Shanghai Stock Exchange Composite Index, broke through the 60-day moving average and moved between RMB 14,900-15,050/mt. SHFE lead prices are expected to rally and move higher to between RMB 15,000-15,300/mt this week.
In China’s domestic spot markets, spot lead prices last week were between RMB 15,000-15,120/mt with premiums of RMB 100/mt over the most active SHFE lead contract price. Smelters were more willing to move goods, but supply shortages were still reported, leaving spot lead prices relatively resilient. Early last week, downstream purchasing increased with the onset of peak demand season for electric vehicle batteries, but buyers only waited on the sidelines as lead prices rose at mid-week. Supply from smelters should increase with the approach of the month’s end when lead prices tend to stabilize. Since supply shortages are easing and buying interest from downstream enterprises is up from increasing orders for electric vehicle batteries, traders and downstream buyers will likely purchase moderately with traded prices expected to be between RMB 15,050-15,250/mt this week.