Primary Lead Output Will Stabilise as Maintenance of Large-Scale Secondary Lead Smelters Will Come To An End

SHANGHAI, Mar 28 S(MM) - Despite the low lead ingot inventory, SHFE lead prices will fall if the domestic demand weakens, but may rise if LME lead prices increase and the export window opens. The most traded SHFE lead contract is expected to stand between 15,250-15,450 yuan/mt this week.

The spot prices are expected to move between 15,100-15,350 yuan/mt. This week, the primary lead output will be stable as the maintenance of large-scale secondary lead smelters will come to an end. Coupled with the end of delivery of long-term orders in March, the spot supply is expected to increase. However, the impact of the traditional off-season has expanded. Although the large enterprises produce stably, the demand from small and medium-sized enterprises has weakened. In the follow-up stage, discounts of primary lead and secondary lead may both expand.