Secondary Lead Inventory Continues to Rise, Short-Term Destocking Faces Significant Resistance [SMM Secondary Lead Inventory Weekly Review]

SMM May 22 update:

As of May 21, secondary lead finished product inventories stood at 21,400 mt, up 4,000 mt WoW from May 14. Lead prices fell first and then rose this week, with downstream battery enterprises showing strong wait-and-see sentiment, and weak procurement drove inventory accumulation. After lead prices recovered, some large smelters held back from selling, and spot order inventories rose notably. Going into next week, a major plant in Jiangxi is expected to ramp up production after production resumptions, and a smelter in Guangdong is expected to resume production after environmental protection inspections. Meanwhile, downstream enterprises will begin a new round of long-term contract cargo pick-up. Under the combined effect of multiple factors, secondary lead finished product inventories are unlikely to decline effectively.