SHANGHAI, Jun. 23 (SMM) – Prices for the most active SHFE 1408 lead contract hovered mostly below the RMB 14,000/mt mark before last Thursday, but rose above RMB 14,050/mt on Friday. SHFE lead prices are set to move this week largely between RMB 14,000-14,100/mt, and are likely to swing in a wider range.
In the Shanghai physical lead market last week, traded prices were largely in the RMB 13,800-13,870/mt range ahead of Thursday, but crept up above RMB 13,900/mt on Friday, boosted by higher LME and SHFE lead prices. Gejiu branded lead in the Guangdong market traded at around RMB 13,800/mt, with other leading brands sold between RMB 13,850-13,900/mt. Prices for Lingbao and Anyang brands in the Henan market were slightly lower at RMB 13,750-13,800/mt, and lead prices in the Jiyuan region were RMB 13,850-13,900/mt. Overall trading activity last week was sluggish. Physical lead prices will meet strong resistance as they move higher, and will fluctuate this week mostly between RMB 13,850-14,000/mt. Lead smelters are likely to increase deliveries to raise cash at the mid-year point. Downstream producers could show little buying interest, given slowing production, tight liquidity, and ample finished goods inventories.