SHANGHAI, Jul. 29 (SMM) – Financing aspect of SHFE lead was waning given limited supply in spot lead markets and the narrowing price gap between SHFE current month and three-month lead contracts, allowing SHFE lead prices to be less affected by LME lead. As a result, SHFE 1309 lead contract price hovered at RMB 13,850-13,880/mt last week. This week, SHFE lead prices may not show significant change, moving between RMB 13,830-13,880/mt.
Spot lead prices in Shanghai were mainly in the RMB 13,700-13,770/mt range last week, with discounts of RMB 80-100/mt against the most active SHFE lead contract. Transactions in Guangdong were mainly made for warehouse warrants due to tight supply in spot markets, with most goods quoted at discounts of RMB 30/mt against the SHFE 1308 lead contracts. Henan province reported ample spot goods supply due to its closeness to producing regions, but transactions were limited due to high prices of RMB 13,630-13,720/mt. Overall trading activity was up slightly. Cargo holders should increase supply during the last week of July, easing shortages in some regions. Downstream buyers will still purchase according to need due to financial pressures, with prices expected at RMB 13,650-13,800/mt.