SHANGHAI, Jul. 1 (SMM) – SHFE lead prices were relatively stable last week, although investors were unwilling to enter the market, with SHFE 1309 lead contract price mainly between RMB 13,860-13,950/mt. This week, SHFE lead prices, influenced by LME lead and Chinese stock prices, may move between RMB 13,900-14,000/mt and with more investors expected to enter the market.
Cargo holders in China’s spot lead markets were selling goods more aggressively last week due to urgent month-end cash flow needs, but downstream buyers showed little interest. Some smelters were also more willing to move goods, but recent maintenance and production cuts allowed many smelters only enough output for long-term orders. As a result, spot markets saw no surge in supply and with spot lead prices still low at RMB 13,700-13,780/mt. Downstream buying interest should grow this week as the new month eases tight cash flows, but buyers still may only purchase to order during the low demand season. Smelters will continue to hold prices firm, but trading activity of middlemen may increase. In this context, transactions should improve with spot lead prices expected at RMB 13,700-13,850/mt.