Lead social inventories increased in a weakening market

Published: Dec 6, 2019 18:05
Stocks rose over 1,000 mt from a week earlier to 38,200 mt as of Dec 6, after an increase of 1,600 mt in the previous week

SHANGHAI, Dec 6 (SMM) – Inventories of lead ingots in China rose for a second straight week, showed SMM data, as further declines in lead prices deterred downstream consumers from buying and traders from selling.

SMM data showed that lead social stocks across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin rose over 1,000 mt from a week earlier to 38,200 mt as of December 6, after an increase of 1,600 mt in the previous week.

Lead prices extended their declines, with a lower support level of secondary lead costs as prices of battery scrap fell as well. This boosted risk aversion sentiment across the market, and muted spot trades.

Smelters continued to deliver their cargoes to social warehouses, lifting lead social inventories.

Downstream consumers are likely to remain cautious about procurement next week, while primary lead smelters are stepping up production for higher profits as treatment charges for lead concentrate rose in some regions.

Changes in costs for secondary lead and the impact on supply will remain the determinant of the lead social inventories.

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.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
Lead Prices Stagnant, Smelters Maintain Firm Offers Amid Losses
21 hours ago
Lead Prices Stagnant, Smelters Maintain Firm Offers Amid Losses
Read More
Lead Prices Stagnant, Smelters Maintain Firm Offers Amid Losses
Lead Prices Stagnant, Smelters Maintain Firm Offers Amid Losses
Lead prices were in the doldrums, while secondary lead smelters maintained firm offers due to losses. The mainstream spot order ex-factory prices including tax narrowed the discount to the SMM #1 lead average price by 100 yuan/mt, shifting to a premium of 0–25 yuan/mt, with some smelters halting offers and sales.
21 hours ago
"Domestic Secondary Crude Lead Market Slows as Holidays Approach, Smelters Halt Production"
21 hours ago
"Domestic Secondary Crude Lead Market Slows as Holidays Approach, Smelters Halt Production"
Read More
"Domestic Secondary Crude Lead Market Slows as Holidays Approach, Smelters Halt Production"
"Domestic Secondary Crude Lead Market Slows as Holidays Approach, Smelters Halt Production"
Pre-holiday stockpiling by downstream enterprises had largely concluded, and a few had already entered the holiday period, completely suspending procurement. Next week, secondary lead smelters will enter a concentrated wave of production halts and holidays, resulting in sluggish trading activity in the spot market. Offers for spot refined lead orders were sparse, with prices moving in line with the market.
21 hours ago
Sluggish Transactions in Domestic Secondary Crude Lead Market, Prices at 15,250-15,400 Yuan/mt
21 hours ago
Sluggish Transactions in Domestic Secondary Crude Lead Market, Prices at 15,250-15,400 Yuan/mt
Read More
Sluggish Transactions in Domestic Secondary Crude Lead Market, Prices at 15,250-15,400 Yuan/mt
Sluggish Transactions in Domestic Secondary Crude Lead Market, Prices at 15,250-15,400 Yuan/mt
The domestic secondary crude lead market experienced sluggish transactions. As of February 6, 2026, the ex-factory tax-exclusive offers for domestic secondary crude lead stood at 15,250-15,400 yuan/mt. Downstream refined lead and alloy smelters gradually entered the holiday period, showing weak stockpiling willingness. Overseas lead ingot suppliers basically halted transactions with China due to poor consumption in the Chinese market, with only some previously concluded shipments maintaining normal in-transit transportation. The trading atmosphere in the secondary crude lead market will continue to weaken next week.
21 hours ago