SHANGHAI, Oct. 27 (SMM) – Lead for December delivery on the Shanghai Futures Exchange, the most active contract, fluctuated between RMB 13,600-13,700/mt last week. Positions for all SHFE lead contracts decreased by some 3,000 lots from the week ending October 18 as investors headed for the exit. SHFE lead will be resistant to declines this week, but will lack impetus to rise, with prices expected at RMB 13,600-13,800/mt.
Traded prices on China’s physical lead markets were mostly in a RMB 13,550-13,700/mt band last week. Lead smelters ramped up sales to increase cash flows, helping ease tight supply, while traders bought actively to replenish inventories. Downstream producers, however, slowed purchases last week after building up some inventories earlier and expecting no further price rises. Spot lead prices should range between RMB 13,600-13,800/mt this week. Lead smelters should continue selling actively in late October. Although some downstream producers may start buying, the market will remain in oversupply this week, likely denting spot prices.