SHANGHAI, Mar 8 (SMM) – Social inventories of primary lead across Shanghai and Guangdong climbed this week as price advantages of secondary materials attracted a greater share of demand from downstream battery producers.
SMM data showed that social inventories of primary lead across Shanghai and Guangdong increased some 30 mt from a week ago to stand at 13,300 mt as of Friday March 8. The buildup in Jiangsu and Zhejiang provinces exceeded that in Shanghai and Guangdong this week.
Environmental curbs in Henan province lowered primary lead shipments from local smelters, and this capped gains in stocks across social warehouses in Shanghai and Guangdong.
This week, improved margins prompted secondary smelters to restart production, which buoyed spot supplies and drove offers of secondary refined lead into discounts.
As of Friday March 8, secondary refined lead was mostly offered at a discount of 200-100 yuan/mt over the average price of SMM 1# refined lead.
