Social inventories of lead ingots rose for nine weeks in a row

SHANGHAI, Jul 10 (SMM) – Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin increased more than 2,700 mt on the week to 36,500 mt as of July 10. 

Gains in lead prices improved profits at secondary lead smelters, encouraging them to deepen their discounts for secondary refined materials to 400-300 yuan/mt against the average price of SMM1# lead, ex-works, with some at 450 yuan/mt, as of Friday.

Most of the traders preferred to deliver cargoes to warehouses amid widening price spread between spot and futures lead prices. Spot lead was offered at discounts of 50 yuan/mt to flat against the SHFE 2007 lead contract. Except long-term contracts, downstream buyers favoured secondary lead for its price advantages than refined lead, further building up refined lead stocks.

Transports in some regions were hindered by the heavy rainfall this week, delaying delivery of some cargoes to next week.