SHANGHAI, August 21 (SMM) – Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin rose nearly 500 mt from the prior week to 37,000 mt in the week ended August 21.
Supplies of primary and secondary lead were stable this week, while downstream battery makers adjusted production amid the hot weather and were cautious about restocking. Meanwhile, discounts of secondary refined lead further expanded to 250-350 yuan/mt as of August 21 against the average price of SMM 1# lead, with some heard at 400 yuan/mt. In the second half of the week, battery makers stockpiled as lead prices fell below 16,000 yuan/mt, limiting the increase in lead inventories.
Social inventories are expected to continue to rise slightly next week as consumption is still curbed by the hot weather.