Multiple Factors Drive Significant Decline in Primary Lead Enterprise Inventory [SMM Primary Lead Inventory Weekly Review]

          As of June 11, the in-factory inventory of primary lead’s major delivery brands stood at 11,000 mt, down by 4,800 mt WoW.

This week, primary lead smelters in east China underwent minor maintenance, causing a temporary tightening of lead ingot supply. Meanwhile, lead prices weakened and once fell below the 16,000 mark, prompting active dip-buying from downstream enterprises. After the price decline, secondary lead smelters suffered deeper losses, either suspending shipments or selling at a premium (against SMM #1 lead), forming an inversion with primary lead prices and shifting downstream procurement toward primary lead. By Friday, inventories at lead smelters in Henan, one of the main production areas, had declined further, with queues forming for cargo pick-up and some orders scheduled into next Thursday. In-factory inventories at smelters are expected to remain low going forward.