SHANGHAI, Apr. 9 (SMM) – There were only three trading days in the SHFE lead last week, so SHFE 1305 lead contract prices remained low between RMB 14,250-14,380/mt and with strong resistance met at the 5-day moving average. SHFE 1306 lead contract price will test RMB 14,430/mt this week.
Spot lead prices in China last week were mainly between RMB 14,200-14,280/mt, and with spot discounts against the SHFE 1305 lead contract price reported at RMB 50-100/mt. Downstream orders for lead-acid batteries remained sluggish and the expected pre-Qingming Festival lead replenishments at battery producers failed to materialize. Smelters were unwilling to sell goods due to falling lead prices, so transactions in markets were mainly among traders. In domestic spot lead markets, some smelters with inventory pressures will start selling goods since lead prices are expected to bottom-out. Buying interest downstream may also increase, but limited downstream orders and existing finished goods inventories may limit any improvement in consumption. Spot lead prices are expected be between RMB 14,250-14,400/mt and with spot discounts narrowing.