Social inventories of primary lead remain unchanged in 1st week after CNY break

SHANGHAI, Feb 15 (SMM) – Social inventories of primary lead across Shanghai and Guangdong remained unchanged in the first week after the Chinese New Year break as stockpiles and lower lead prices held back lead-acid battery producers from purchasing lead and as the imminent expiration of the front-month contract deterred arrivals from smelters.

Stocks of primary lead across social warehouses in Shanghai and Guangdong stood at 16,200 mt as of Friday February 15, flat with Monday February 11 but up 10,800 mt from February 1, the last Friday before the CNY break, SMM data showed.

Most large lead-acid plants resumed operation earlier this week, but made limited purchases as they had existing stocks and as the declines in lead prices earlier in the week kept them cautious.

During the holidays, large smelters maintained stable production while battery producers suspended. This contributed to the gains in stocks over the holidays.