SHANGHAI, Apr. 15 (SMM) – SHFE 1306 lead contract prices held steady with support at RMB 14,350/mt last week, but met resistance at RMB 14,500/mt. SHFE 1306 lead contract prices will likely hover around RMB 14,450/mt this week.
Spot lead was mainly traded last week at RMB 14,150-14,260/mt, with spot discounts of RMB 200-260/mt against the most active SHFE lead contract. Motive battery prices were cut as lead prices fell, but battery consumption was still soft. Lead smelters remained unwilling to sell goods at current low prices. The price cuts by leading motive battery manufacturers and soft battery demand will force manufacturers to focus on selling down existing inventories, curtailing battery output and reducing purchases of lead ingot. Lead smelters may still fulfill long-term contracts, with spot lead prices expected at RMB 14,250-14,400/mt.