SHANGHAI: Lead prices in Shanghai surged to near their highest in six years on Monday, driven by a supply tightness in top consumer China and hopes for further economic stimulus that could bolster demand.

The most-traded June lead contract on the Shanghai Futures Exchange (SHFE) jumped to as high as 17,790 yuan ($2,468.81) per metric ton, a level unseen since July 2018.

The contract was up 0.9% at 17,665 yuan a ton by 1551 GMT.

“Some primary lead smelters cut production for routine maintenance while a few secondary lead smelters’ utilisation rates are also constrained by shortage of battery scraps, leading to a fall in refined lead output in recent weeks,” said analyst Dina Yu at consultancy firm CRU Group.

Part of the reason was the increased substitution of lead batteries with lithium-ion batteries between three and two years ago, she said.