SHANGHAI, Jul. 29 (SMM) – LME lead should struggle around $ 1,800 per tonne next week with poor technical indicators while SHFE 1609 lead may challenge 13,800 yuan per tonne, SMM lead analyst reckons.
Environmental Factor to Weigh on China Refined Lead Operating Rates to a New LowImproved fundamentals and positive technical indicators will give rising strength to SHFE lead.
Spot lead in China’s domestic market may rise to 13,500-13,700 yuan per tonne. An increasing number of smelters will cut or halt production due to tight concentrate supply. Cargo holders will keep optimistic and hold back sales at lows. Lots of secondary lead smelters shut down due to environmental factor, which will tighten secondary lead supply. This will also indirectly grow demand for refined lead. On the supply side, battery makers will gradually raise operating rates and increase lead purchase.
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