SHANGHAI, Apr. 21 (SMM) – Physical lead prices in China are expected to move at 12,500-13,500 yuan per tonne in the second quarter this year, according to a report on website of the China Nonferrous Metals Industry Association (CNIA).

“With downstream producers depleting stocks through sales promotion, inventory pressure has eased some this year. Besides, lead consumption will pick up with the arrival of peak demand season,” the CNIA said. However, it also pointed out that the improvement may be limited.

On the supply side, the CNIA expects China’s lead output to fall further in the second quarter with an increasing number of primary lead smelters halting production. But the decline may slow as secondary lead output is expected to grow with prices rising.

Collectively, the CNIA holds that tightening supply and recovering demand will bode well for lead prices in the second quarter.

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