Lead terms weaken further in China

摘要

Market participants referred to the weakness of the lead market in China for much of last year, and the last month has proved to be no exception. The seasonal slowdown ahead of Chinese New Year holidays is exacerbating the sense of market frailty, which has continued to weigh heavily on lead prices. Chinese lead smelters have responded as a result, and not just to the extent that would be expected at this time of year. However, it is not entirely obvious whether or not the reported cutbacks have been more than usually severe this year. We hear that Yuguang has trimmed the operation rates at its plant in Henan by 15-30% since December and has no plan to review this decision until mid-February, ie. after the Chinese New Year.