Prices hover at lows after profits grow secondary Lead production
SHANGHAI (Scrap Register): Lead prices weakened last week. This, together with a seasonal lull in March, grew caution across downstream lead-acid battery producers. They are expected to continue purchasing as required this week, according to SMM.
If lead prices continue to fall, primary smelters are likely to withhold from selling as their in-plant stocks have fallen to normal levels. Offers at primary smelters and traders may remain flat against the futures prices.
Higher profits will support production at secondary smelters, which is likely to keep offers of secondary refined lead at discounts against primary lead this week.
The three-month LME lead is expected to trade at $2,065-2,125/mt this week with the SHFE 1904 contract at 17,250-17,650 yuan/mt. Spot prices are seen at 17,350-17,500 yuan/mt.