SHANGHAI, May 5 (SMM) – SHFE lead followed LME lead, hovering between RMB 13,600-13,800/mt last week. The SMM/LME lead price ratio dipped from over 6.6 to between 6.5-6.6.
Spot lead in Shanghai, Henan and Jiangxi traded at a RMB 50-100/mt premium against SMM #1 lead on tightening spot lead supply. Lead smelters sold only small quantities at high prices at month’s end. Traders were eager to replenish stocks, pushing spot lead prices up. Downstream producers purchased to need, replenishing some inventory before the May Day holiday. Price gap between secondary and refined lead was RMB 300-400/mt, encouraging more downstream producers towards secondary lead.
SHFE lead prices will track LME lead trends, but resistance will be strong at RMB 13,900-14,000/mt.