Weaker purchases, greater supply grow lead social inventories

SHANGHAI, Jul 12 (SMM) – Overall social inventories of refined lead in China, including primary and secondary materials, continued to grow this week as an ongoing low season and volatile lead prices sidelined lead-acid battery producers and as supply recovered from maintenance.

SMM data showed that lead social inventories across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin rose by over 2,200 mt in the week to Friday July 12, to stand at 37,800 mt.

The approaching July delivery grew arrivals at social warehouses, and expanded inventories.

Next week will also see a recovery at some primary and secondary lead smelters, which will likely extend the increase in social inventories, if environmental pressure has minimal impact.