SHANGHAI, Mar.26 - SHFE lead prices fell to RMB 14,410/mt, but gained back losses to hover around the 5-day moving average last week, due mainly in response to a 4.5% rise in the Shanghai Composite Index. SMM expects SHFE lead prices will be RMB 14,400-14,650/mt this week.
In China’s domestic spot markets, spot discounts over the SHFE 1305 lead contract price expanded to RMB 100/mt, with traded prices at RMB 14,400-14,500/mt. Smelters were mainly fulfilling long-term contracts due to low lead prices, while bearish downstream enterprises purchased only cautiously to minimize financial risk. Since spot lead prices have remained low so far in March, and with the average price down RMB 200/mt from February levels, smelters were unwilling to move goods last week. However, they may be forced to sell goods this week given growing inventory pressure. Buying interest downstream will remain low and spot lead prices are expected to be RMB 14,350-14,550/mt.