Social inventories of lead ingots rose to the highest level since August 2016

SHANGHAI, Apr 16 (SMM)—Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin expanded 18,700 mt from last Friday April 9 to 76,000 mt as of Apr 16. This was up 15,000 mt from Monday April 12.

Secondary lead supply has continued to rise since April, but consumption of lead-acid batteries was sluggish. Downstream users only restocked in the first half of this week, and stood on the sidelines when lead prices strengthened later in the week, and this, combined with cargoes delivered to social warehouses, led to the sharp rise in lead social inventories.

Lead social inventories are likely to grow slower next week as environmental inspections continue and the delivery comes to an end.