SHANGHAI, Mar. 4 (SMM) – SHFE lead prices hovered within a narrow range and with resistance felt at the 5-day moving average as demand in spot markets was depressed, with investors unwilling to enter the market. SHFE lead prices should be RMB 14,900-15,150/mt, with influence from LME lead prices and Chinese stocks.
In China’s spot lead markets, large raw material stock replenishments did not materialize, with downstream buyers purchasing on an as needed basis. Cargo holders with bullish toward the future outlook, however, and held prices firm, with traded prices mainly between RMB 14,650-14,830/mt, with spot discounts over the most active SHFE lead contract price narrowing to RMB 150-200/mt. Supplies were ample in spot markets, but trading was light. Downstream enterprises are expected to purchase based on production this week, but with demand improving slightly. Spot lead prices are expected at RMB 14,700-14,850/mt, with spot discounts over the most active SHFE lead contract price expanding to RMB 200-300/mt. Cargo holders will continue to keep prices high early in the week, but trading will be modest.