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SHANGHAI, May 29 (SMM) – The SHFE lead price is likely to extend its gains on shrinking secondary lead supply and low primary lead inventories, SMM believes.

The SHFE 1807 contract hit a high of 20,210 yuan/mt on Tuesday May 29 after it traded rangebound at 19,750-19,920 yuan/mt the previous day. The overall market sentiment remained bullish.

Fundamentally, intensified environmental inspections continued to suppress secondary lead supply while primary lead inventories remained at low levels as growing secondary lead prices pushed downstream consumers to buy primary lead. As of May 25, lead inventories at the SHFE warehouses stood at 12,676 mt, down 45.5% from the end of April.