Social inventories of lead ingots fell on output cuts at secondary lead smelters

SHANGHAI, Oct 23 (SMM) – Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin shrank more than 1,700 mt from the previous week to 27,000 mt as of Friday October 23.

Some secondary lead smelters reduced production as secondary lead prices fell below cost lines, and as cheap battery scrap was in short supply. Discounts of secondary refined lead narrowed to 100 yuan/mt (ex-factory) against the average price of SMM 1# lead, driving some downstream users to refined lead.

The decline in lead social inventories is likely to halt next week as some secondary lead smelters are expected to restore production while lead consumption is tepid.