LME base metals mostly closed at lower price after a rebound on Monday. Lead futures appeared better than other metals, continue to keep up trend. LME 3-month lead closed at USD1250/MT on Monday from USD1215/MT last Friday.

Effected by the rising price of LME lead and a limited supply of lead ingot, 1# lead rose to RMB11700-11900/MT in Chinese spot market on Monday, the market concluded price was around RMB11800/MT.

At present, lead concentrate supply remains tight in Chinese market, and the prices of the material keep increasing follow the rising lead ingot prices. A miner held 220t lead concentrate with pb 60% min said, The price of lead concentrate increased from about RMB4600/t last week to about RMB4800/t this week. But smelters are prudent to purchase the material due to the increasing price for fear that the price may decline in the coming days. They only purchase few quantity which can only meet their demand for one day.

Athough lead price rises, the market still have not seen any obvious improvement. Demand from buyers still keeps weak and the trade in the market is still not active. Considering the main factors of thin demand, it is hard for the lead price to go up. Therefore, many smelters will not replenish stocks at high price. Lead prices may keep stable and recoiling gradually in the coming days.