Countdown to Chinese New Year Market: How Is Primary Lead Supply Expected to Change? [SMM Analysis]

As the Chinese New Year holiday approaches, the lead market is experiencing a simultaneous decline in supply and demand. What are the expectations for changes in primary lead supply? SMM provides an analysis——

According to reports, major domestic primary lead smelters are expected to maintain stable production during the Chinese New Year holiday, with routine holiday maintenance mainly carried out by small and medium-sized smelters in Henan, Hunan, Yunnan, and other regions.

Due to some smelters gradually entering production cuts or maintenance shutdowns this week, coupled with limited recovery from previously maintained smelters, the supply from primary lead smelters in January may record a slight decline. Around the Chinese New Year holiday, the month-over-month reduction in primary lead supply may approach 10,000 mt, with relatively small differences compared to previous years.

Additionally, apart from smelters undergoing maintenance and production cuts during the Chinese New Year holiday, smelters in regions such as Hunan and Guangdong that conducted maintenance in January are expected to resume operations ahead of the holiday's end in February and plan to enter market trading in the first week after the holiday. Although primary lead smelters in many regions have generally sold out their inventories with firm quotations before the holiday, attention should still be paid to the concentrated recovery of supply after the holiday and the inventory sales pace of major smelters.

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