SHANGHAI, Mar 15 (SMM) – Social inventories of primary lead across Shanghai and Guangdong fell below 10,000 mt as of Friday March 15, after they stood above that level for a month, as traders barely restocked on a bearish outlook on lead prices.
Continued environmental curbs on primary smelters in Henan province affected supply, which also accounted for the drop.
SMM data showed that social inventories of lead ingot across the two areas decreased by over 4,100 mt from a week ago to stand at 9,100 mt as of Friday March 15.
Trades of primary lead remained weak after expanded discounts of secondary lead attracted more downstream demand. Secondary smelters recovered last week as margins improved, and this grew discounts of the secondary materials.
Traders mostly depleted their primary inventories without stockpiling. Some of them delayed picking up cargoes under long-term contracts with smelters, SMM learned.
However, overall social inventories of primary lead in China remained in an upward trend as a seasonal lull deterred purchases from lead-acid battery producers. Some primary smelters raised their shipment to warehouses in major consumption areas of Jiangsu and Zhejiang, ahead of the delivery day on March 15, and this also grew domestic stocks this week.
