SHANGHAI, Mar. 11 (SMM) – The most active SHFE lead contract fell to a new low of RMB 13,710/mt after initially rising as high as RMB 13,970/mt. Positions increased by more than 1,000 lots. SHFE lead prices should hold steady between RMB 13,750-13,950/mt given mixed technical indicators this week.
In China’s physical lead markets last week, trading activity remained light, and traded prices ranged mostly between RMB 13,650-13,800/mt. Lead smelters began holding back goods, causing supply to fall in both the Shanghai and Guangdong markets. Downstream producers replenished raw material inventories only when SHFE lead prices were low since they were reporting disappointing orders and believed lead prices would fall further. Spot lead prices are forecast this week to trade mostly between RMB 13,700-13,800/mt. Purchases from downstream lead-acid battery producers are unlikely to recover due to sluggish end-user consumption and tight liquidity. Nevertheless, these producers are willing to go bargain-hunting after lead prices stabilize at low levels. More maintenance at lead smelters during March should support lead prices.