Home / Metal News / Lead prices soar on tight supply, inventory drop

Lead prices soar on tight supply, inventory drop

iconMay 8, 2018 09:45
Source:SMM
The price of SHFE lead surged to a two-month high on Monday May 7 due to tight supply and declining inventory.

SHANGHAI, May 8 (SMM) – Prices of SHFE lead surged to a two-month high on Monday May 7, reversing its weak performance from late March. This is mainly due to the tight supply resulted from environmental restrictions and declining domestic inventory, SMM believes.    

Supplies of secondary lead has been hit by intensified environmental checks on small-sized, non-certified smelters in Guangxi, Yunnan and Hunan provinces in recent weeks. The shortage of battery scrap also grew the tightness of supplies of secondary refined lead. This narrowed the price gap between secondary refined lead and higher grade primary lead.

Secondary refined lead price stood at an average of 18,483 yuan/mt last week, up some 100 yuan/mt week on week, SMM data showed. SMM’s #1 lead price stood at an average of 18,550 yuan/mt last week, up 80 yuan/mt from a week ago. The price gap narrowed to 67 yuan/mt.

This has led market demand to turn to primary lead.

In addition, supplies of primary lead were also limited as some smelters have yet to resume full production following maintenance work.

As of May 4, the total inventory of lead ingots in Shanghai and Guangdong stood at 14,500 mt, down 39,200 mt from the same period last year, SMM data showed.

 


For editorial queries, please contact Daisy Tseng at daisy@smm.cn 
For more information on how to access our research reports, please email service.en@smm.cn

lead supply
price
secondary lead

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news

SMM Events & Webinars

All