SHANGHAI, Jun. 17 (SMM) – There were only two trading days in China last week, and SHFE lead prices started the first trading day below the 30-day moving average due to falling LME lead prices during the Chinese Dragon Boat Festival and the 3% plunge in domestic stock markets, and only moved around RMB 13,800/mt last Friday. Positions for the most active SHFE lead contract were down 36 lots to 1,782 lots, and traded volumes fell 664 lots to 132 lots. Investors opted to watch on sidelines. Warehouse warrants for SHFE lead, though changing quickly, still showed downward trend, and domestic lead supply was tightening, so the most active SHFE lead contract price will unlikely extend the declines and may move between RMB 13,800-13,950/mt this week.
Trading in China’s spot lead markets was quiet, with cargo holders supplying goods normally and downstream buyers staying out of the market. Traded prices for spot lead were mainly between RMB 13,800-13,900/mt, with premiums of RMB 70-100/mt against the most active SHFE lead contract price. With the approach of the delivery date, increasing warrants may help ease the tightness in lead market this week, but lead-acid battery producers will still purchase as needed due to inventory pressure and limited orders. However, traders will be aggressively moving goods, and spot lead prices are expected to be RMB 13,800-13,950/mt this week.