Lead social inventories turned lower as downstream consumers reopened

SHANGHAI, Feb 28 (SMM) – Social inventories of lead ingots in China edged lower this week, as more than 80% of the lead-acid battery producers have restarted production.

SMM data showed that lead social stocks across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin dipped over 600 mt in the week ended February 28 to 41,600 mt, after an increase of 3,500 mt in the previous week.

On the supply side, limited secondary lead smelters have resumed production due to a shortage of the raw material (battery scrap) and manpower. This drove lead consumers to primary lead, depleting social inventories.

Social inventories of lead ingots in China are expected to extend their decline next week, as the latest SMM survey showed that secondary lead smelters are unlikely to broadly recover supply until at least the middle of March.