Lead Ingot Social Inventory Growth Slowed as Delivery Impact Faded [SMM Survey]

According to an SMM survey, as of November 18, the total social inventory of lead ingots in five regions reached 85,000 mt, an increase of 5,900 mt compared to November 11 and an increase of approximately 800 mt compared to November 14.

The survey indicated that after the SHFE lead 2411 contract was delivered last Friday, the movement of suppliers transferring inventory to warehouses significantly decreased, leading to a slowdown in the growth of lead ingot social warehouses. Meanwhile, the fog warnings in regions such as Hebei and Henan were lifted, and vehicle transportation in Henan returned to normal, resulting in a decline in inventory in northern warehouses. Additionally, the resumption of production by secondary lead enterprises in regions like Anhui increased the market supply, providing more procurement options for downstream enterprises in east China. Furthermore, as lead prices jumped initially and then pulled back last week, some suppliers continued to transfer in-plant inventory to social warehouses. Moreover, the delivery of long-term contracts for lead ingots in November is expected to conclude this week, and before the start of new monthly long-term contracts, the smelters are expected to have limited transferable inventory, leading to no significant increase in social inventory in the near future.