Demand Diversion Leads to Slight Inventory Accumulation, Operating Rate Decline Limits Subsequent Inventory Buildup [SMM Secondary Lead Inventory Weekly Review]

SMM, July 24:

As of July 23, secondary lead finished product inventories stood at 24,200 mt, up about 3,000 mt WoW. This week, secondary lead sellers held back from selling and quoted firm prices. Primary lead captured demand with low prices and discounts, leaving secondary lead uncompetitive; downstream buyers favored primary lead. Coupled with downstream buyers holding off spot order purchases in late month and waiting for long-term contract cargo pick-up next month, subdued spot trades led to inventory buildup. Next week, the secondary lead operating rate is expected to continue to pull back, supply will contract somewhat, and finished product inventories are forecast to keep building, but the room for additional growth is limited.