SHFE 1507 Lead Grows RMB 80/mt (May 28, 2015)

The power rationing in Yunnan, Henan, and Hunan since July-August and the power rationing in Jiangxi and Guangxi in September are undoubtedly the current hot spots. According to a recent SMM survey, the power rationing in Jiangsu, Guangdong and other regions in China has continued. Since late September, the social inventory of lead ingots has declined due to the combined effects of losses, power rationing and environmental protection.

LME lead will fluctuate at highs between USD 2,460-2,490/mt today.

Motive battery supply is tight in China's market and will ease in mid and late June.

Average operating rate at surveyed 51 Chinese lead-acid battery producers was 62.12% in March, up 3.35 percentage points MoM but down 4.41 percentage points YoY.

SHFE 1702 lead started at RMB 18,800/mt and finally ended at RMB 18,780/mt, up RMB 315/mt or 1.71%.

SHFE 1610 lead started at RMB 13,945/mt and ended at RMB 13,960/mt, up RMB 10/mt or 0.07%.

LME lead will narrowly range USD 1,885-1,905/mt during Asian trading hours Friday.

SHFE 1609 lead started at RMB 13,615/mt and ended at RMB 13,840/mt, up RMB 290/mt or 2.14%.

With positive technical indicators and expectation for loose macro environment, both LME and SHFE lead should move at highs next week, SMM lead group predict.

LME lead stays above the 5 and 10-day moving averages and should move between USD 1,620-1,650/mt during Asian trading hours Friday.