Tight Regional Supply and High Secondary Lead Prices Drives Lead Ingot Social Inventory to Decline   

SHANGHAI, Mar 3 (SMM) - As of March 3, the social inventory of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin was 51,800 mt, down 3,000 mt from last Friday (February 24) and 1,700 mt from Monday (February 27).

According to research, due to the falling lead prices and regional supply difference, discounts offered by lead smelters gradually narrowed, including primary lead and secondary lead prices. As of March 3, the prices for small orders offered by primary lead smelters in the south China were in premiums of 0-75 yuan/mt against the SMM1# lead price, and the secondary refined lead prices were in premiums of -75-50 yuan against the SMM1# lead price. As such, most downstream enterprises preferred to purchase primary lead in light of better cost-efficiency. The stocks in major social warehouses declined further. In March, downstream enterprises mainly purchase as needed amid the traditional off-season of lead-acid battery market. At the same time, the supply of secondary lead supply may loosen with the commissioning of new smelters. Therefore, the decline in lead ingot social stocks may slow down.