This Week, Downstream Rigid Demand Restocking, Secondary Lead Finished Product In-Factory Inventory Pulled Back [SMM Secondary Lead Inventory Weekly Review]

SMM August 21 News:

As of August 20, secondary lead finished product inventories stood at 27,600 mt, down 2,200 mt MoM. Lead prices recovered in stages, and downstream battery and alloy enterprises seized the opportunity to carry out just-in-time restocking, driving some cargo circulation and achieving a small destocking of plant inventories. However, end-users have not yet entered the substantive peak season. Downstream mainly adopts just-in-time procurement, and large-scale stockpiling has not yet emerged. Secondary lead still lacks obvious price advantage compared with primary lead.

Looking ahead to next week, if lead prices maintain a fluctuating trend, smelters' production willingness will rise to some extent, but tight raw material supply still constrains actual output. Downstream demand is unlikely to see explosive improvement, and just-in-time procurement will continue. Overall, secondary lead finished product inventories will continue to destock modestly, with limited destocking magnitude. The key is to track smelter raw material arrivals and the actual pace of downstream procurement and sales.