SHANGHAI, Feb. 18 (SMM) – SHFE lead prices, negatively affected by weak LME lead prices, also fell from RMB 15,600/mt to RMB 15,250/mt, a decline of 1.3%, and below all moving averages.
In China’s domestic spot markets, branded lead was traded on Monday February 4 above RMB 15,000/mt, and quotations later remained firm at RMB 14,950/mt despite falling SHFE and LME lead prices. Spot discounts over the most active SHFE lead contract price narrowed from RMB 500/mt to RMB 330/mt, but since most downstream buyers had already completed stock replenishments, trading was quiet, with almost all traders closed by Thursday. Although more investors will enter spot lead markets following the holiday, lead supply will be ample since lead-acid battery producers have already built raw material stocks and since smelters maintained normal production during the holiday. Spot lead prices are expected to rise marginally due to influence from SHFE lead prices. SHFE lead prices may rally following the holiday due to positive expectations for post-holiday demand.