SHANGHAI, Mar. 18 (SMM) – SHFE lead prices last week mainly hovered between RMB 14,550-14,770/mt and below the 5-day moving average due to depressed demand in spot lead markets. SHFE lead prices may test the lower Bollinger band and move around RMB 14,800/mt.
In spot lead markets, cargo holders were unwilling to move goods due to low prices, while downstream enterprises only purchased based on production needs. This soft demand left spot lead prices at RMB 14,550-14,770/mt, and with spot discounts over the most active SHFE lead contract price narrowing to RMB 100-150/mt. Spot discounts in domestic lead markets may expand after the delivery date, with spot lead prices expected between RMB 14,500-14,650/mt. Lead demand will recover slowly, but smelters should become more willing to sell goods as lead prices have now bottomed out.