SHFE 1507 Lead Drops RMB 95/mt (June 1, 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 1603 lead opened at RMB 14,055/mt Thursday evening.

US January non-farm employment slated for release today is expected to fell below December’s.

The Bank of England will announce its interest rate decision today.

SMM surveyed 30 industry insiders with regard to lead price trends this week and found that 43% see lead price rise.

Operating rates at lead producers picked up in Yunnan’s Gejiu who halted operation previously because of profitable lead prices and TCs.