SHANGHAI, Jun. 17 (SMM) – Branded lead in Shanghai traded at discounts to the average SMM #1 lead price for the first time almost two months June 16, SMM data show.
Spot prices for well-known brands in Shanghai tumbled to 13,330 yuan per tonne, a discount of 20 yuan per tonne to SMM #1 lead price, and off by 140 yuan compared with price for Nanfang Nonferrous’ product June 15.
Growing supply and anemic demand should be blamed for the weakening prices, SMM reckons.
Nanfang Nonferrous restarted from maintenance in May and increased supply to Shanghai. At the same time, traders were keen to ship goods from Guangdong to Shanghai considering the wide price spread. Both factors drove up goods availability in Shanghai.
Demand for #1 lead has been waning due to onset of an offseason for lead-acid battery sector.
“Some downstream buyers preferred secondary lead due to the large spread between #1 lead and secondary lead, while some sourced goods in Henan as lead prices there were lower than Shanghai’s,” SMM lead analyst noted.
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