Inventory Transfer to Delivery Warehouse Drives Up Lead Ingot Social Inventory, Delivery Volume Decreases MoM [SMM Survey]

According to an SMM survey, as of December 16, SMM lead ingot social inventory across five regions reached 58,600 mt, an increase of 2,500 mt compared to December 9 and approximately 700 mt compared to December 12.

According to the survey, yesterday marked the delivery date for the SHFE 2412 lead contract. Over the weekend, lead smelting enterprises and traders continued transferring inventory to delivery warehouses, leading to another rise in lead ingot social inventory. However, the delivery volume for this round was significantly lower than in November. The primary reason is that, at the year-end, suppliers tend to sell spot cargoes for quicker cash flow, as delivery requires a certain time cycle. Meanwhile, downstream enterprises have shown moderate purchasing enthusiasm recently, and lead smelting enterprises generally shipped at premiums. Spot order quotations were at premiums of 50-100 yuan/mt against the SMM 1# lead average price on an ex-factory basis.