Seaborne arrivals, warehouse rectification grow social inventories of primary lead in Shanghai

SHANGHAI, Nov 30 (SMM) – Social inventories of primary lead across Shanghai and Guangdong increased by 1,200 mt over the week ended November 30 to stand at 18,100 mt, SMM data showed.

While downbeat economic data lowered LME and SHFE lead at the start of the week, spot prices were firm on tight supplies of ore and battery scrap and as heavy pollution limited production across smelters.

Over the week, stocks in Shanghai grew by 1,400 mt and stood at 15,700 mt as of November 30, as seaborne materials arrived. The delivery warehouse in Shanghai underwent rectification and exiting stocks could not be put on warrants. This deterred sellers from offloading cargoes.

Cheaper resources across smelters diverted some downstream demand and this grew stocks in Shanghai.

Stocks of primary lead in Guangdong fell this week as smaller price spreads between primary and secondary lead drove downstream consumers to purchase primary materials. Production curbs, maintenance and limited supplies for retail sales across smelters in Hunan and Henan also prompted buyers to shift to social resources, further lowering social stocks in Guangdong.