SMM Reports 4-Month High in Lead Ingot Social Inventory Due to Increased Transfers to Delivery Warehouse

[SMM Lead Ingot Social Inventory: Increased Transfer to Delivery Warehouse Pushes Social Inventory to a 4-Month High]

SMM, March 17: According to SMM, as of March 17, the total social inventory of lead ingots across five regions tracked by SMM reached 71,700 mt, an increase of 5,500 mt compared to March 10 and 4,000 mt compared to March 13.

Today marked the delivery date for the SHFE lead 2503 contract. Delivery warehouse transfers arrived at warehouses over the weekend, pushing the social inventory of lead ingots above the 70,000 mt threshold again, reaching a 4-month high. Recently, lead prices have fluctuated upward, with the overall price center moving higher. However, spot market transactions have been weaker than futures, with the spread between futures and spot prices remaining around 200 yuan/mt, prompting some suppliers to maintain an interest in transferring to delivery warehouses.

Meanwhile, the in-plant inventory of major primary lead smelters has fallen below 10,000 mt (as of March 13, the weekly in-plant inventory of primary lead enterprises was 5,700 mt). Subsequent lead ingot transfers are expected to be limited, and the inventory buildup trend in social inventory may slow after delivery.