Primary lead inventories gain on the week

SHANGHAI, Oct 26 (SMM) – Social inventories of primary lead across Shanghai and Guangdong increased by over 2,300 mt over the week ended October 26 to stand at 14,700 mt amid a sharp increase across Shanghai warehouses, SMM data showed.

Discounts of secondary refined lead remained wide and stood above 300 yuan/mt ex-factory against SMM 1# primary lead earlier this week. Premiums of primary lead stayed at highs and were heard at 150 yuan/mt over the SHFE 1811 contract.

Lower prices drove lead-acid battery producers to shift to secondary materials from primary materials and this grew inventory in Shanghai.