Social inventories of primary lead in Shanghai, Guangdong shrink as sellers destock

SHANGHAI, Feb 1 (SMM) – Social inventories of primary lead across Shanghai and Guangdong extended their declines by over 1,700 mt in the week ended February 1 to stand at 5,400 mt, SMM data showed. 

Sellers lowered premiums to clear inventories in the final week prior to CNY, and this extended the drop in social stocks. The lowest offers of domestic brands were flat over the SHFE 1902 contract, which attracted some downstream purchases in the first half of the week despite overall thinner trades.

In-plant stocks at primary lead smelters, however, accumulated this week, as they maintained regular production while downstream purchases weakened. 

CNY breaks across downstream battery plants and the suspension of logistics services weighed on overall transactions in the spot market from a week earlier.