Lead Ingot Social Inventory Up 900 mt over Weekend

SHANGHAI, Oct 11 (SMM) – The social inventory of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin increased 900 mt from October 8 and fell 9,400 mt from September 27 to 206,500 mt as of October 11.

Amid the lead price rebounding and the upcoming delivery for SHFE 2111 lead contract, some primary lead stocks were transferred to the social warehouses. The second round of the environmental protection inspections ended, so the secondary lead smelters in Guangdong and Hubei started to resume production to meet the downstream demand. The inventories rose in Shanghai and Guangdong, and the total social inventory increased slightly.

More secondary lead smelters will resume production this week, and the power rationing in Hunan has eased, so the local production will recover in the second half of this week. However, the power rationing in Jiangsu has intensified, and the production of the lead-acid battery is limited. The inventory of lead ingot is expected to keep rising.