#1 Lead Price Movement in Shanghai Market (2014-4-8)

SHANGHAI, Apr. 8 (SMM) – Goods from Chihong Zn & Ge, Nanfang, Chengyuan, and Shuikoushan traded Tuesday mostly between RMB 13,680-13,700/mt, a discount of some RMB 10-30/mt over the most active SHFE 1405 lead contract price. Traded prices were RMB 13,680/mt for Shuangyan supply wrapped with plastic steel and Humon resources, and RMB 13,650/mt for Shuangyan supply wrapped with iron sheet. Lead smelters continued to hold back goods due to low lead prices. The latest SMM survey showed the average operating rate at lead smelters in March was instead down from February’s level, and is expected to fall further in April. With tight physical supply from Nanfang and Chengyuan in the Shanghai market, traders became even more disinclined to move goods. Downstream producers, however, were more active restocking Tuesday following the Qingming holiday, with trading activity better than last Friday.