SMM China Lead Ingot Inventory Up 400 mt on Week

SHANGHAI, Apr 8 (SMM) – SMM China lead ingot inventory across five major markets totalled 99,800 mt as of Friday April 8, up 400 mt from last Friday April 1 and 500 mt from Wednesday April 6.

According to SMM research, lead-acid battery market has been increasingly muted after the Qingming Festival, and some lead-acid battery manufacturers even curtailed the production due to resurging pandemic, resulting in less demand for lead ingot compared with March. In addition, as lead prices dropped recently after hitting high, futures and spot prices showed great differences, especially in the major supplying areas like south China where the supply has been relatively sufficient, and the spot prices were mostly in wide discounts. However, the Shanghai market was still affected by the pandemic, and the operation of warehouses faced many difficulties. The sources from early deliveries were shipped from Zhejiang and Jiangsu, and arrived recently, reversing the previous fall in local inventory.

SHFE 2204 lead contract will be delivered next week, and lead social inventory is expected to rise after the sources for delivery arrive.