SHANGHAI, May 21 (SMM) – HSBC’s China manufacturing PMI for May was 49.1, below expectation. Besides, more reports about China’s soft economy appeared, boosting the case for fresh stimulus measures and thus favoring metals prices.
Deals for Shuangyan (packed in iron) were made at RMB 13,650/mt with Honglu brand trading at RMB 13,400-13,500/mt. Lead smelters did not sell spot goods and delayed to execute orders. Spot supply should increase next week. Downstream producers showed little interest in buying old goods despite production need. Branded lead traded at RMB 13,800/mt in Henan, versus RMB 13,400/mt in Guangdong. The RMB 400/mt price spread between Shanghai and Guangdong market enticed Guangdong goods to flow into Shanghai market.