SHANGHAI, Jan. 28 (SMM) – SHFE lead prices were relatively stable and mainly moved around RMB 15,200/mt last week, with resistance at the 20-day moving average, but support at the 5-day moving average. High production costs at domestic smelters limited any downward room for SHFE lead prices. SHFE lead prices should hover around the 20-day moving average this week.
Spot lead prices in China were between RMB 14,660-14,800/mt, with spot discounts of RMB 400/mt over the most active SHFE lead price contract price. Quotations for branded lead remained high due to limited supply, leaving trading light. Downstream buyers still purchased only as needed. Selling interest at smelters may increase before the upcoming Chinese New Year holiday, but buying interest will be dampened since some traders and downstream enterprises will close early for the holiday. Those enterprises remaining open will likely purchase on an as-needed basis, leaving trading quiet and spot prices between RMB 14,650-14,800/mt this week.