Lead Ingot Social Inventory is Expected to Remain Low

SHANGHAI, May19 (SMM) - According to SMM research, as of May 19, the total social inventory of SMM lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin reached 28,800 mt, a decrease of 7,400 mt from May 12 and 5,500 mt from May 15.

According to the research, with the end of the delivery of the SHFE 2305 lead contract, the goods flowed back to the market and thus the lead prices declined at the begining of the week. As most enterprises purchased as needed, the lead ingot inventory declined. In addition, some primary lead smelters' maintenance plan in mid-May also tightened the supply, especially the supply of deliverable goods. Therefore, the lead ingot inventory is expected to remain low with further downside potential.