Decline of Lead Ingot Social Inventory Slows Down amid Weak Fundamentals and Approaching Delivery of SHFE 2304 Lead Contract

SHANGHAI, Apr 10 (SMM)- According to SMM research, according to SMM research, as of April 10, the total social inventory of SMM lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin reached 33,600 mt, flat from last Friday (April 7) and fell 4,700 mt from last Monday (April 3).
According to research, the supply of lead ingot tightened regionally in light of the maintenance of primary lead and secondary lead smelters. Meanwhile, the off season of lead battery market weighed on the demand. In addition, as lead prices rebounded, downstream companies mostly purchased in the form of long-term orders from smelters, and thus the demand for lead ingots from social warehouses declined. Approaching the delivery of the SFHE 2304 lead contract, the supply of deliverable goods will be gradually transferred to the SHFE warehouse, hence the social inventory of lead ingots may stop falling and rebound.