SMM Lead Ingot Social Inventory: Social Inventory Hits 4-Month High, Future Focus on Supply Changes

SMM reported on March 20 that as of March 20, the total social inventory of SMM lead ingots in five locations reached 74,000 mt, an increase of 2,300 mt from March 17 and 6,200 mt from March 13.

At the beginning of the week, the SHFE lead 2503 contract completed delivery, and suppliers transferred to delivery warehouses, which was the main reason for the recent accumulation of social inventory. Meanwhile, SHFE lead fluctuated upward, with a large spread between futures and spot prices. The price of cargoes self-picked up from production sites in major regions was at a discount of 200-100 yuan/mt against the SHFE lead 2504 contract, prompting some suppliers to continue transferring to delivery warehouses. Additionally, primary lead smelters in Henan recently entered maintenance, leading to a temporary tightening of lead supply. At the same time, some imported lead ingots completed customs clearance and entered the domestic market, with most directly entering factories, such as secondary lead enterprises. Future attention should be paid to the marginal changes in refined lead supply.