SHFE Lead Finishes with Small Gains (2017-8-14)

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.

SMM expects lead inventory to stay low in the short term on tight supply and high consumption from downstream battery plants in June.

The price of SHFE lead surged to a two-month high on Monday May 7 due to tight supply and declining inventory.

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

LME lead will trade at USD 2,480-2,520/mt on Thursday and SHFE 1709 lead will fluctuate at RMB 20,000-20,400/mt.

LME lead will trade at USD 2,320-2,355/mt on Wednesday and SHFE 1709 lead will fluctuate at RMB 19,200-19,400/mt.

Traders were active in selling goods, while firm offers kept downstream producers on sidelines, leading to sluggish transaction in those markets.

International Lead & Zinc Study Group (ILZSG) reported Monday global lead supply deficit expanded to 91,000 tonnes during January-May, compared to 45,000 tonnes deficit in the same period of 2016, acc

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

China’s primary lead output was 224,000 tonnes in April, down 14.5% MoM and 21.5% YoY, SMM surveys.