By Julian Luk
LONDON (Reuters) – Would-be sellers of battery metal lead on the Shanghai Futures Exchange (ShFE) have been forced to search for overseas supplies or roll forward contracts they hoped to close following a change in specifications, four sources familiar with the matter said.
ShFE declined to comment.
While the global lead market is well supplied, Shanghai’s stocks have been tightened after the ShFE in April lowered the content of bismuth in lead that can be delivered against its contracts in response to stricter emission standards for Chinese battery makers.
As traders struggled to find material to meet the new requirements, China in July became a net importer after years of being a net exporter and lead prices on ShFE reached a six-year high of 20,050 yuan a metric ton on July 18.
They have since eased to 17,434 yuan.
Lead trading activity also surged, reaching all-time highs of 126,959 lots, or 288,550 metric tons,…
