Secondary lead prices rise in China
2009-10-26 09:34:53 【Print】
BEIJING (Asian Metal) 26 Oct 09 – Pushed up by the rising primary lead ingot prices, the secondary lead prices are also on the rising road this week. However, market participants revealed that after the prices increased, the trading slows down in the spot market, so they predicted that there will be limited room for the price to go up further in the near future.
A Fujian-based secondary lead producer reported that their trading about secondary lead is very quiet during the week, with few inquiries received from consumers.
The supplier offered the secondary lead at about RMB13,700/t ex works VAT excluded, up by about RMB200/t (USD29/t) compared with that one week ago. “Although the demand is dull, we have to adjust up our offers for secondary lead, as the disused lead acid battery prices have increased by about RMB300/t (USD44/t) to RMB8,000/t (USD1,171/t) VAT excluded in the local spot market,” said the source. “However, when refined lead ingot prices were at about RMB15,500/t (USD2,269/t), our offers for secondary lead were at about RMB13,500/t (USD1,977/t) ex works VAT excluded. The refined lead ingot prices have increased by RMB500/t (USD73/t) to about RMB16,000/t (USD2,343/t) in recent two weeks, but the secondary lead prices only increased by about RMB200/t (USD29/t).”
In view of the dull demand from buyers, the source predicted that it is hard for the prices to go up further.
The smelter has piled up about 1,000t of lead ingot stocks on hand, against its common stocks of 700t in the past. The smelter’s secondary lead output is about 300tpm, based on its capacity of 800tpm.
A source from a Hebei-based secondary lead smelter reported that they raised secondary lead price by about RMB300/t (USD44/t) to RMB13,800/t (USD2,020/t) VAT excluded last week. “In line with the rising refined lead ingot prices, the secondary lead ingot prices are following suit,” said the source. “With most buyers watching the market, the trading is not very active in the spot market.”
The source predicted that with lead prices rising, the buying interest from buyers is weakening, so there may be limited room for the prices to go up further in the near future.
The sources said that the disused lead acid battery prices increased by RMB400/t (USD59/t) to RMB8,100/t (USD1,186/t) VAT excluded last week. The supply of the material remains tight in the local market.
The smelter is running fully with an output of 1,500tpm and holds about 200t of stocks on hand.
