SMM Lead Weekly Price Review and Forecast (Mar. 16-20, 2015)

SHANGHAI, Mar. 17 (SMM) – SHFE 1505 lead contract underperformed LME lead at the beginning of last week and moved at RMB 12,200-12,300/mt, but started rising on Wednesday to climb above RMB 12,300/mt. SHFE 1505 lead contract prices are expected at RMB 12,300-12,450/mt and test resistance at RMB 12,450/mt.

Spot lead trading in China showed some improvement last week. Limited supply of branded goods in Shanghai left prices in the region RMB 100/mt higher than those in Henan. Thus, some downstream buyers preferred to purchase from Henan. However, tight cash supply and sizeable inventories prevented downstream producers from buying in large amounts.