Social inventories of lead ingots increased 4,800 mt on week

SHANGHAI, Sep 11 (SMM) – Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin rose more than 4,800 mt from the prior week to 36,500 mt in the week ended September 11.

Lead prices extended declines this week, falling below 15,000 yuan/mt, which deterred smelters from selling. Some of the smelters halted sales of spot cargoes, while traders, especially those in major trading areas such as Zhejiang province, became more willing to deliver goods to warehouses. Losses of secondary lead smelters expanded as lead prices declined, and discounts of secondary refined lead narrowed, falling from 300 yuan/mt to about 100 yuan/mt, ex-works, against the average price of SMM 1# lead, which drove some downstream users to purchase from the trading market.