SMM7 June 6: according to SMM research, since May 8, the social inventory of lead ingots began to accumulate. As of July 3, the total inventory of lead ingots in the five places of SMM reached 33800 tons, an increase of 25800 tons compared with May 8.
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The reasons for the rise in social inventory of lead ingots:
On the one hand, the spot discount of the smelter is gradually expanding, the difference between the spot price is large, and the willingness of the smelter to deliver the position is strong. According to SMM statistics, the supply of delivery between the smelter and the trader is expected to be close to 20, 000 tons.
On the other hand, the profits of recycled lead have been gradually repaired, and recycled lead is still quoted with deep water, including tax, and the price advantage of recycled lead is reflected. The downstream procurement is biased towards recycled lead, impacting the primary lead market. As of July 6, the mainstream quotation of recycled refined lead left the factory at an average price discount of 250 yuan / ton to SMM1# lead.
In addition, at present, the consumption of lead-acid battery market is weak, and automobile storage enterprises still maintain sales promotion. And a small number of enterprises even step up sales promotion efforts. Electric bicycle storage enterprises look forward to the peak consumption season in the future, and lead prices fluctuate higher, and some enterprises raise battery prices, but the actual boost is limited.
To sum up, SMM believes that at present, smelters have a strong willingness to deliver positions, while the expansion of recycled lead discounts is superimposed by weak downstream consumption, and it is expected that the social inventory of lead ingots will continue to accumulate.
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