Deepened production curbs extend decline in lead social stocks

Published: Sep 27, 2019 17:02

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Stocks declined 4,400 mt from a week ago to 19,000 mt as of Sep 27

SHANGHAI, Sep 27 (SMM) – Social inventories of refined lead in China continued to fall this week, as smelters across major producing hubs such as Hebei, Henan and Anhui provinces were ordered to slash production to combat air pollution.

SMM data showed that lead social stocks across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin decreased for an eighth week in a row, falling 4,400 mt from a week ago to 19,000 mt as of Friday September 27. The stocks dropped 4,000 mt in the prior week.

Primary and second lead smelters had to cut production by 20-30% after the Beijing-Tianjin-Hebei region and surrounding areas activated a smog-control alert of orange level or above earlier this week.

Lead social inventories were also depleted by pre-holiday stockpiling by downstream consumers, as lead-acid battery producers plan to take a break of only up to three days in the Golden Week holiday.

Stocks are likely to stem their recent declines after the holiday, as production will recover after environmental restrictions are lifted after October 3.

Inventory data Lead

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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