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Home / Metal News / Trading Diverges in China Refined and Secondary Lead Market

Trading Diverges in China Refined and Secondary Lead Market

Mar 5, 2016 14:19

Source:SMM

Transactions are stagnant recently in Chinese #1 refined lead market while those in secondary lead market are red-hot.

SHANGHAI, Mar. 5(SMM) – Transactions are stagnant recently in Chinese #1 refined lead market while those in secondary lead market are red-hot. What factors are behind the diverging scenes?

Secondary lead supply tightened in Jiangxi, Guangdong, Hebei and Shandong’s Linyi and some smelters even pre-sell goods for March in Kunming. #2 lead also witnessed upbeat trading activities with mainstream prices at 13,600-13,700 yuan per tonne.

SMM #1 lead saw big gains in previous period and this leads to downstream buyers more favor secondary lead. SMM #1 lead increased 300 yuan per tonne from the end of January. #2 lead also registered gains but still about 100 yuan per tonne lower than #1 lead.

Growing downstream buyers turn willing to use secondary lead as raw materials, especially motive lead-acid battery producers, which contains demand for refined lead.

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