Amid Supply Increase and Demand Decrease, Primary Lead Enterprise Inventories Surged [SMM Primary Lead Inventory Weekly Review]

          According to sources, as of July 23, in-factory inventory of primary lead delivery brands stood at 30,300 mt, up 13,200 mt WoW.

This week, primary lead smelters in Hunan registered steady production with a slight increase, further easing spot supply. Some suppliers, nearing month-end, failed to complete cargo pick-up under July long-term contracts, causing discounts in the spot market to widen rapidly. Meanwhile, downstream lead-acid battery enterprises experienced downtime due to high temperatures towards the month-end, and most other enterprises also maintained production cuts amid poor orders, limiting procurement demand for lead ingots. As a result, in-factory inventory at primary lead smelters surged. Notably, as the spread between futures and spot prices widened, some suppliers planned to transfer in-factory inventory to delivery warehouses, and the pace of conversion from in-factory inventory to social inventory warrants attention.