SHANGHAI, Jun. 8 (SMM) - The most active SHFE lead contract price rose to RMB 14,195/mt from stronger LME lead prices in the past week, with trading activity also up from a week ago. Some investors booked profits before the upcoming Chinese Dragon Boat Festival. SHFE will be open for only two trading days next week, so SHFE lead prices will be largely influenced by LME lead.
In China, spot lead prices on Monday were around RMB 13,900/mt and downstream demand was up due to pre-holiday stock building. However, downstream buyers turned cautious as prices rose to between RMB 13,950-14,000/mt. Traders were holding limited stocks and saw few opportunities to replenish stocks, leaving trading muted in the latter half of the week. Downstream buyer may increase purchases after the holiday, but smelters are expected to hold prices firm. Supply will increase with the approach of the delivery date, so spot lead prices are expected to hover around RMB 14,000/mt.