LME Lead to See Range-Bound Trading (2017-8-23)

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.

China imported 85,000 tonnes of lead ore and concentrates in January-May 2017 via Port of Manzhouli, up 8.7% YoY.

SHFE 1708 lead opened at RMB 18,050/mt and closed at RMB 17,765/mt, down RMB 165/mt or 0.92%.

SHFE approved to cancel warehouse for lead deliveries at Shanghai Baosteel Logistics.

SHFE 1707 lead opened at RMB 16,750/mt and closed at RMB 16,975/mt, up RMB 105/mt or 0.62%.

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

SHFE 1707 lead opened at RMB 16,485/mt and closed at RMB 16,480/mt, down RMB 125/mt or 0.75%.

SHFE 1707 lead opened at RMB 15,930/mt and ended higher by RMB 50/mt or 0.31% to RMB 15,980/mt.

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.