Lead Ingot Social Inventory Soared to a One-Month High, Follow-Up Focus on Smelters and Downstream Production Trends [SMM Survey]

According to the SMM survey, as of August 19, the total social inventory in the five regions surveyed by SMM reached 64,800 mt, an increase of 22,100 mt compared to August 12, and an increase of 7,600 mt compared to August 15.

According to the survey, last week coincided with the delivery of the SHFE lead 2408 contract, leading to a significant accumulation of lead inventory as holders moved their stocks to warehouses. Recently, primary lead smelters have maintained relatively stable production, with smelters in South China actively shipping out goods. The ex-factory price of scattered orders was quoted at a discount of 200-100 yuan/mt to the SMM 1# lead average price. Some traders took advantage of the low prices to purchase, and the pre-ordered imported lead from July has been arriving in the domestic market, continuing the increase in lead social warehouse inventory and setting a new one-month high. In mid-to-late August, some primary lead delivery brand companies and secondary lead companies plan to undergo maintenance, while most downstream companies are also in a state of reduced production. With both lead supply and demand decreasing, the growth in lead social inventory may slow down in the future.