Primary lead social inventory in Shanghai, Guangdong grows

SHANGHAI, Jul 20 (SMM) – Social inventories of primary lead across Shanghai and Guangdong increased 3,100 mt from a week ago to 10,700 mt as of Friday July 20 as cargoes flowed into the physical market after delivery, SMM data showed.

Lead prices continued to fall this week. The first half of the week saw brisk transactions of imported materials while supplies of domestic materials sharply grew after Wednesday as deliveries completed.

Meanwhile, sluggish downstream demand kept lead-acid battery plants purchasing on demand.

Smelters recently offered at discounts of 100-200 yuan/mt against SMM assessments of 1# lead for retail orders, much lower than traded offers. Some downstream consumers chose to purchase from smelters, which also helped grow social inventories.