Slight growth in primary lead social inventories in Shanghai, Guangdong

SHANGHAI, Jul 27 (SMM) – Overall social inventories of primary lead in Shanghai and Guangdong edged up this week after the decline in Guangdong offset most of the increase in Shanghai, SMM research found as of Friday July 27.

Inventories across the two regions increased by 200 mt from a week earlier to 10,900 mt.

Over the week, stocks in Shanghai rose by 1,100 mt to 7,300 mt as deliveries from smelters to the market grew after smelters completed backlogged orders. Fresh inflows of imported materials also grew inventories, but growth eased as lead-acid battery producers favoured lower-cost imports over domestic materials.

In the Shanghai market on Friday, imported lead was offered at discounts of 120-100 yuan/mt against the SHFE August contract while domestic lead was offered at a premium of 150-350 yuan/mt.

Meanwhile, stocks in Guangdong decreased 800 mt to 3,600 mt as some lead-acid battery plants restocked on demand. Risk aversion in the downstream market eased this week as lead prices stemmed their recent tumbles.