Environmental protection lifted, inventory transfer for delivery increased, lead ingot social inventory hit a new high in a year [SMM survey]

According to SMM survey, as of November 7, the total inventory of lead ingots in five major regions reached 77,800 mt, an increase of 5,100 mt compared to October 31, and an increase of 4,900 mt compared to November 4.

According to the survey, last week, the air pollution warnings in Henan, Hebei, Anhui, and other regions were lifted. On one hand, the transportation restrictions for some primary lead smelters ended, and on the other hand, secondary lead smelters began to resume production. Meanwhile, with only several days left until the delivery date of the SHFE lead 2411 contract, suppliers increased the volume of lead ingots transferred from in-plant inventory to social warehouses. Additionally, as lead prices rebounded from a low point, downstream lead-acid battery enterprises restocked as needed. During this period, since many secondary refined lead smelters sold at a premium (to the SMM 1# lead average price), downstream enterprises preferred to purchase primary lead, which relatively eased the increase in social inventory.