SHANGHAI, Oct. 22 (SMM) – Last week, SHFE lead prices hovered between RMB 15,630-15,730/mt early last week, then rose to RMB 15,750/mt last Thursday. SHFE lead prices should be between RMB 15,650-15,950/mt this week since the limited price spread among different contracts and weak market demand is offering few arbitrage opportunities.
Spot lead prices in China were mainly between RMB 15,380-15,550/mt, with spot discounts over the most active SHFE lead contract price narrowing to RMB 150-200/mt. Selling interest at smelters was dampened by continuous declines in lead prices, but demand from downstream buyers still remained weak. This week, smelters will be willing to move goods due to growing month-end financial pressures, but downstream buyers will only purchase moderately at lower prices. Mainstream traded prices are expected to be RMB 15,400-15,650/mt, with spot discounts over the most active SHFE lead contract price at RMB 200-250/mt.