SHANGHAI, Jan. 14 (SMM) – Last week, SHFE lead prices mainly moved between RMB 15,100-15,230/mt, with both longs and shorts staying on the sidelines. Influenced by LME lead prices and domestic stock markets, SHFE lead prices will likely edge up to RMB 15,170-15,290/mt this week.
In China’s domestic spot markets, traded prices were mainly between RMB 14,650-14,780/mt. Investors in spot lead market were bullish given recent price increases for motive lead-acid batteries. In response, cargo holders held prices firm, with spot discounts over the most active SHFE lead contract price narrowing to RMB 350/mt. Downstream buyers, however, still only purchased as needed. This week, spot discounts over the most active SHFE lead contract price should continue to narrow with the approach of the delivery date. Downstream enterprises will begin replenishing stocks in preparation for the upcoming Chinese New Year holiday, which will drive up lead demand in spot markets, with spot lead prices expected between RMB 14,700-14,850/mt.