Demand recovery lowers social inventories of primary lead in Shanghai, Guangdong

SHANGHAI, Feb 22 (SMM) – Social inventories of primary lead across Shanghai and Guangdong fell this week as lead-acid battery producers restocked lead after they returned from holidays and as high secondary lead prices drove buyers to primary materials.

SMM data showed that social inventories of primary lead across Shanghai and Guangdong fell over 2,000 mt from a week ago to stand at 14,000 mt as of Friday February 22.

Most secondary lead smelters have yet to resume production, resulting in tight supplies of secondary lead. This, together with thin profit margins that smelters can see, pushed prices of secondary lead higher than prices of primary lead.

SMM assessments showed that secondary refined lead was offered in premiums of 100-200 yuan/mt over the average of SMM 1# refined lead as of Friday.