Primary lead social stocks rebound as sellers raise offers

SHANGHAI, Jan 4 (SMM) – Social inventories of primary lead across Shanghai and Guangdong rebounded by 900 mt over the week ended Friday January 4, and stood at 19,300 mt, as higher offers by traders pushed downstream buyers to purchase cheaper secondary lead or materials from smelters. 

This week, falling prices of futures drove spot sellers to firm up offers, up to a premium of 150 yuan/mt over the SHFE January contract, from the deepest discount of 50 yuan/mt before the New Year’s Day holiday. This deterred downstream purchases and buoyed social inventories of primary lead. 

Downstream buyers started to stockpile ahead of logistics suspension during the Chinese New Year holiday, SMM learned.