Social inventories of lead ingots increased nearly 1,800 mt this week

SHANGHAI, Dec 4 (SMM) – Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin expanded nearly 1,800 mt from the prior week to 41,000 mt as of Friday December 4.

Lead prices dropped from highs this week, while downstream battery makers were cautious about restocking amid moderate battery consumption. Mainstream traded prices of secondary refined lead fell to 400-450 yuan/mt (ex-factory) lower than the average price of SMM 1# lead in the middle of the week as secondary lead smelters resumed production. The larger price spread between spot and futures prices prompted sellers to deliver cargoes to social warehouses.

Lead social inventories are expected to rise further next week as new secondary lead capacity will come online.