Firm Lead Price Keeps Downstream Producers on Sidelines, SMM Reports

SHANGHAI, Aug. 8 (SMM) – In Shanghai, Shuangyan #1 lead was offered at 18,980 yuan per tonne on Tuesday, 100 yuan per tonne lower than SHFE 1709 lead. Few offers were heard from traders due to tight supply.

In Guangdong, Nanhua #1 lead was offered at 19,075 yuan per tonne with discounts of 50 yuan per tonne against SHFE 1710 lead.

Primary lead prices remained in upward track on Tuesday. Traders in Shanghai and Guangdong were active in selling goods, while firm offers kept downstream producers on sidelines, leading to sluggish transaction in those markets.

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In Henan, Jiyuan Wanyang Smelting Group and Dongxing Zhicheng Nonferrous Metal Recycling stopped making offers for spot transaction. Anyang Yubei Gold & Lead Group offered #1 lead price at 19,050 yuan per tonne, 150 yuan per tonne higher than average SMM #1 lead price, and 19,000 yuan per tonne was from Xinling Lead Industry with premiums of 100 yuan per tonne. Primary lead smelters made firm offers, and some downstream battery producers replenished stocks based on orders. Transaction was still mainly under term contracts.

In Anhui, #1 lead price offered by Tongguan Nonferrous Metals was 250 yuan per tonne higher against average SMM #1 lead price at 19,150 yuan per tonne, while Jiangxi Jinde Lead Industry in face of supply shortage held back spot offers. Traders showed modest selling interest, while some battery producers were wary of purchases and bought goods mainly under term contracts.

Multiple Factors Strike Production at Secondary Lead Smelters, and Primary Lead Produce Normally, SMM Reports

In other news, secondary lead was mainly traded at 16,550-16,650 yuan per tonneon Tuesday  in China’s market. Secondary lead smelters made firm offers in response to insufficient supply, while downstream battery producers, fearing price to drop, were wary of purchases. Transaction was poor.

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