SHANGHAI, Jun. 3 (SMM) – SHFE 1307 lead contract became the most active contracts, and its price rose by 1.5% from RMB 13,850/mt to around RMB 14,000/mt. SHFE lead prices may test RMB 14,000/mt this week due to influence from LME lead prices and the Shanghai Composite Index, which is currently above 2,300.
Traded prices in China’s spot lead markets remained between RMB 13,780-13,840/mt last week, with spot discounts of RMB 50/mt against the most active SHFE lead contract price. Downstream buyers were unwilling to purchase but smelters still became bullish due to rising LME lead prices. Smelters held prices high, but trading was muted. Selling interest in China’s spot lead markets may rise this week with financing pressure easing at the beginning of the month and due to rallies in lead prices. Some downstream buyers will replenish stocks ahead of the Chinese Dragon Boat Festival. Smelters, especially medium-size, will be more active selling goods due to rising lead prices, with spot lead prices expected at RMB 13,800-13,950/mt.