Lead ingot social inventory shrank amid tighter supply

SHANGHAI, Jan 21 (SMM) – Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin dropped 4,900 mt from last Friday and declined 3,300 mt from January 15 to 125,100 mt as of January 21, an SMM survey showed.

Since last week, the tight supply of lead concentrate led to lower output of primary lead. Lead prices stood close to 15,000 yuan/mt, and secondary lead prices fell below the cost line, suppressing the smelters’ enthusiasm for production. Some smelters in Anhui started maintenance, and the overall supply of primary and secondary lead declined on the week. At the same time, downstream users maintained a certain amount of purchases around 15,000 yuan/mt, leading to a decrease in the social inventory of lead ingots, especially in Jiangsu and other major consumption regions.