SHANGHAI, May 11 (SMM) – SHFE 1507 lead suffered a sell-off after climbing above RMB 14,000/mt. The contract later dropped back to RMB 13,500/mt as the SMM/LME lead price ratio slipped to 6.45.
Spot lead prices have fallen only RMB 200/mt. Lead smelters stayed away from the market as a small number of traders sold off hedged positions. Shanghai spot lead prices were RMB 200/mt higher than SHFE 1507 lead. Spot lead in Henan tightened with branded lead at a premium over SMM lead.
SHFE lead is expected around RMB 13,300-13,800/mt this week due to sell-offs. China’s spot lead should trade at RMB 13,600-13,900/mt this week.