SHANGHAI, Dec. 2 (SMM) – The most active SHFE lead prices were resistant to declines and moved slightly below the 5-day moving average, hovering between RMB 13,900-14,000/mt. Technical indicators were upbeat, however, lending solid support to SHFE lead prices. SHFE lead prices will be more resistant to declines after falling to previous lows and are expected to hover between RMB 13,800-13,950/mt this week.
Spot lead was traded between RMB 13,850-13,900/mt early last week, but fell by RMB 50/mt as lead smelters later increased trading activity in Shanghai. Spot lead prices in Guangdong province and Tianjin were resistant to declines due to no significant inflow of supply, leaving traded prices in all three markets relatively close. Traded prices for spot lead in Hunan province were below RMB 13,800/mt, since lead smelters trading aggressively. Downstream buying interest will be subdued given current bearish market sentiment this week. However, purchasing should begin to recover this week since tight cash flows will ease in early December and since lead prices are relatively low. Traded prices for spot lead will mostly fluctuate between RMB 13,750-13,850/mt.