SHANGHAI, May 10 (SMM) – Overall social inventories of refined lead in China, including primary and secondary materials, increased this week as stable deliveries from smelters during the Labour Day holiday expanded stocks.
SMM data showed that lead social inventories climbed some 3,300 mt from Friday April 26 and came in at 35,700 mt as of Friday May 10. Stocks across Shanghai and Guangdong grew some 1,000 m to stand at 8,600 mt. As of April 26, stocks have decreased for four consecutive weeks.
This week, lower prices of lead reduced the inclination to destock across sellers, and bolstered premiums of domestic common brands to 100-150 yuan/mt against the SHFE June contract.
Downstream consumption remained sluggish as lead-acid battery producers purchased cautiously. Some battery mills favoured cheap cargoes from smelters and this failed to deplete stocks across social warehouses.
SMM expects the social inventories to hold stable next week as maintenance across primary smelters affects supplies. Delivery day is due next Wednesday.
