SHANGHAI, Apr. 1 (SMM) –The SHFE 1305 lead contract price fell from RMB 14,600/mt to RMB 14,430/mt, down only 1% due to strong cost support. SHFE lead prices are expected to move between RMB 14,350-14,500/mt this week.
Spot lead prices in China also drifted down as well, with traded prices for spot lead down from RMB 14,450/mt to RMB 14,350/mt, and with spot discounts of RMB 80-100/mt against the most active SHFE lead contract price. Downstream buyers still purchased according to production needs given limited downstream orders and volatile lead prices. Goods holders were reluctant to sell goods as prices fell below their costs, with many only fulfilling long-term contracts. Trading in spot lead markets is expected to improve slightly this week as some downstream enterprises may replenish stocks before the holiday. Cargo holders will hold prices firm in early April, with spot prices expected between RMB 14,300 and 14,450/mt.