Downstream delayed cargo pick-up, in-factory inventory at primary lead enterprises rises [SMM Primary Lead Inventory Weekly Review]

          It is understood that as of September 3, in-factory inventory of primary lead delivery brands stood at 18,700 mt, up 1,400 mt WoW.

Recently, several primary lead smelters have been under maintenance, keeping lead ingot supply tight, with circulating cargoes in Southwest and South China notably reduced. However, some of the enterprises under maintenance had built inventory in advance to ensure delivery under long-term contracts. This week, lead prices continued to consolidate at highs, and downstream enterprises only purchased as needed. Spot order transactions were weak, and some sold lead ingots remained at the plants due to delayed cargo pick-up by downstream buyers, pushing up in-factory inventory at primary lead smelters. Meanwhile, production resumptions at secondary lead smelters continued to progress, and the discount of secondary lead to primary lead widened to 100-200 yuan/mt, diverting some downstream rigid demand to secondary lead, which also contributed to the inventory increase at primary lead smelters. Going forward, as downstream cargo pick-up increases, in-factory inventory at primary lead smelters is expected to decline notably.