SHANGHAI, Jul. 15 (SMM) – The most active SHFE 1309 lead contract price also opened higher last Thursday near the 10-day moving average, after hovering between RMB 13,820-13,900/mt earlier in the week. SHFE lead prices will unlikely change significantly this week, but will instead move around RMB 13,850-14,000/mt.
Spot lead prices in China remained between RMB 13,650-13,730/mt for the first three days of last week, with discounts of RMB 150/mt against the most active SHFE lead contract prices. Spot prices later rose by RMB 30-50/mt, to RMB 13,690-13,760/mt, as futures prices moved higher. Lead smelters reported limited finished product inventories, but downstream consumers bought goods only as needed. With the approach of the delivery date, price gap between futures and spot prices should narrow to RMB 100/mt this week, with spot lead prices in China expected at RMB 13,700-13,850/mt. Smelters will continue to hold prices firm and focus on delivering goods for long-term contracts. Downstream purchases may begin to increase with the onset of the high demand season.