SHANGHAI, Jul. 22 (SMM) – SHFE lead prices were not significantly affected by LME lead last week and moved between RMB 13,880-13,900/mt for the first three days last week before edging RMB 30/mt lower to RMB 13,850/mt on Thursday. This week, SHFE lead prices should still follow LME trends, but may be more resilient to declines at RMB 13,810-13,880/mt since prices are now close to this year’s low.
Spot lead was traded between RMB 13,670-13,770/mt early last week, with spot discounts of RMB 120/mt against the most active SHFE lead contract price, but fell by RMB 20/mt as SHFE lead prices moved lower. Although electric vehicle battery producers have raised prices twice this month, the peak demand season has not yet arrived, so downstream purchasing was still soft. Limited supply from smelters caused by a lack of raw materials will offer some support to prices. Downstream buyers may increase purchases in preparation for the upcoming high-demand season, so spot lead prices this week are expected at RMB 13,600-13,750/mt, and with trading activity improving slightly.