SMM Lead Ingot Social Inventory Fell with Fewer Sources from Smelters

SHANGHAI, Feb 24 (SMM) - SMM lead ingot social inventory across five major markets in China totalled 54,800 mt as of Friday February 24, down 29,000 mt from last Friday February 17, and down 26,100 mt from Monday February 20.

The smelters refrained from selling at the beginning of the week as lead prices dropped close to the break-even point of secondary lead. The supply was especially tight in south China due to regional supply difference, and local downstream players had to purchase from social warehouses. In addition, the sources from delivered SHFE 2302 futures contract were back to the market, and most of which were taken by downstream players, another cause for falling social inventory. In the second half of the week, downstream demand weakened as lead prices fell after hitting high in addition to the month-end factor, which is expected to extend. The lead ingot consumption and changes and supply are worth attention entering March.