SHANGHAI, Oct. 15 (SMM) – During the first trading week following China’s National Day holiday, SHFE lead prices fell to RMB 15,800/mt, down 1.2%. The most active SHFE lead contract price may move between the 10- and 30-day moving averages, influenced by the A-shares and with strong support at the 30-day moving average.
In China’s domestic spot market, prices for well-known brands fell to RMB 15,600/mt, down from RMB 15,700/mt, with spot discounts of RMB 250-300/mt over the most active SHFE lead contract price. Spot prices for other lead brands also fell by RMB 100/mt to RMB 15,500/mt. Stock replenishments in large amounts were not reported post-holiday as downstream buyers purchased when prices were rising. Some enterprises purchased mid-week when lead prices fell, but trading remained modest. Smelters reported normal supply. Smelters will be more willing to move goods this week, but downstream enterprises and traders will be cautious, leaving trading light. Traded prices are expected between RMB 15,500-15,700/mt, with spot discounts over the most active SHFE lead contract price at RMB 300/mt.