Secondary lead finished product inventories pull back MoM; watch for stockpiling progress ahead of the dual holidays [SMM secondary lead inventory weekly review]

SMM, September 4:

As of September 3, secondary lead finished product inventories stood at 19,800 mt, down 800 mt MoM. The continued destocking was mainly driven by a recovery in downstream battery producers' operating rates, with increased market inquiries following the lead price correction and some release of restocking demand for essential needs. Meanwhile, tight spot order supply at some smelters and limited availability for sale further suppressed inventory accumulation at plants.

Looking ahead to next week, rising supply at the margin is expected to slow the pace of destocking, but raw material pressure at smelters in regions such as Inner Mongolia is becoming more pronounced. If production cuts are realized, finished product inventories may continue to destock at low levels. Going forward, it remains important to track the actual lead ingot purchasing intensity driven by battery producers' stockpiling ahead of the two festivals.