SHANGHAI, Apr. 22 (SMM) – SHFE 1306 lead contract prices also fell from RMB 14,200/mt to a record low of RMB 13,425/mt last week, a decline of 5.5%. This SHFE 1306 lead contract price is expected to move between RMB 13,600-14,000/mt and with support at RMB 13,600/mt this week.
Last week’s spot lead prices in China were mainly around RMB 14,000/mt, with spot discounts of RMB 150/mt against the most active SHFE lead contract price. Later, spot prices fell to RMB 13,550/mt as SHFE lead prices moved lower, causing the spot discount to narrow to RMB 50-70/mt. Smelters became even more reluctant to move goods, while downstream buyers turned bearish and stayed out of the market. This week, downstream buyers may remain unwilling to purchase despite the approach of the May Day holiday, with many buyers believing there is still room for prices to decline further. Smelters will also hold back from selling due to low prices, with spot lead prices expected at RMB 13,600-13,850/mt.