Lead ingot social inventory across five major markets in China totalled 78,500 mt

According to SMM survey, the lead ingot social inventory across five major markets in China totalled 78,500 mt as of May 16, up 19,400 mt from May 9 and 11,600 mt from May 13.

Suppliers focused on making warehouse receipts and transferring them to warehouses for the delivery of the SHFE front-month contract last week. The weekly increase in social lead ingot inventories was nearly 20,000 mt, reaching a 5-month high. The strong trend of SHFE lead, coupled with the tight supply of raw materials, propelled smelters to raises prices, with premiums of 200-300 yuan/mt over the average price of SMM #1 lead, ex-factory. In the off-season for lead-acid battery, the rise in lead prices has limited boost to the end-user market. Most downstream companies are under cost pressure and either continue to raise battery prices or reduce or stop production. The purchase of lead ingots is based only on demand, and the lack of consumption has also led to an accumulation of lead ingot inventories. In addition, since May, import losses on lead ingot imports have narrowed rapidly. If the import conditions are met, social inventories will continue to increase.