SHANGHAI, Jan 18 (SMM) – Social inventories of primary lead across Shanghai and Guangdong declined 7,300 mt in the week ended January 18 to stand at 11,700 mt, while overall social inventories grew to 37,000 mt, SMM data showed.

Lead prices tumbled earlier in the week, narrowing the discounts of secondary lead against SMM 1# primary lead to zero. The gap even flipped to premiums for some offers.

This lowered the appeal of secondary lead and drove buyers to primary lead, resulting in the decline in stocks across Shanghai and Guangdong.

Overall social inventories, however, extended gains this week as lead-acid battery producers preferred to purchase directly from smelters.

Stocks in Changxing, close to Shanghai, expanded this week as rectification at Shanghai warehouses drove deliveries to settle in Changxing.