Secondary Lead Smelter Inventory Edged Up Slightly, Weak Demand Curbed Supply Absorption [SMM Secondary Lead Inventory Weekly Review]

SMM, August 14:

As of August 13, secondary lead finished product inventories stood at 29,800 mt, up 2,200 mt WoW. This week, some smelters resumed production and ramped up, leading to a partial release of lead ingot output; however, batteries remained in the consumption off-season, downstream users maintained only just-in-time procurement, spot secondary refined lead transactions were weak, and output absorption was limited, driving a slight buildup in plant inventories. Looking ahead to next week, supply-side growth is expected; however, if lead prices remain in the doldrums, some enterprises may still cut production under pressure from losses, which will constrain further rises in inventories. End-use demand is unlikely to improve significantly, and downstream large-scale stockpiling has not yet begun. Secondary lead finished product inventories are expected to maintain their upward trend, but the extent of inventory buildup will be limited; it is necessary to track smelters' actual production pace and downstream purchasing follow-through.