SHANGHAI, Mar. 11 (SMM) – The SHFE 1305 lead contract became the most active contract last Tuesday, but its price fell to RMB 14,700/mt under influence from falling LME lead prices. The most active SHFE lead contract price is expected to move between RMB 14,700-14,950/mt.
In China’s domestic spot markets, last week’s trading improved slightly as downstream enterprises resumed production and lead prices fell by RMB 100/mt. Some cargo holders suffering from tight cash flows cut prices, but those with less financial pressure were reluctant to move goods, keeping traded prices at RMB 14,530-14,680/mt. Spot discounts over the most active SHFE lead contract price should be around RMB 150/mt this week with the approach of delivery date, and spot lead prices are expected to be RMB 14,600-14,800/mt. Selling interest among cargo holders may recover as lead prices bottom out, but downstream enterprises will still purchase only as needed to avoid risk.