SHANGHAI, Jan. 28 (SMM) – Trading in the secondary lead market is light ahead of the upcoming 2016 Chinese New Year holiday, and inventories at most secondary lead producers are low.
A recent SMM survey, covering seven producers (secondary lead producers, #2 lead producers and alloy plants) in Jiangxi, finds that most of them are holding low inventories of finished goods.
One of the seven producers have stopped production for the upcoming holiday, and sold out products. Two of the six online producers are now engaged in processing business, with little stocks, and three #2 alloy producers told SMM that they would suspend production after finishing orders, and now mainly consume existing stocks for production needs, stopping buying secondary lead.
Supply of secondary lead will go tight after the holiday due to low inventories of at producers, and this will likely give some support to lead prices, SMM says.
Currently, mainstream traded prices of secondary lead are between 11,450-11,700 yuan per tonne, up with rising lead prices.
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