SHANGHAI, Sep 18 (SMM) – Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin shrank more than 1,000 mt from the prior week to 35,400 mt in the week ended September 18.
Lead prices fluctuated around 15,000 yuan/mt this week, and discounts of secondary lead narrowed significantly when lead prices fell below 15,000 yuan/mt. Meanwhile, in the trading market, 1# refined lead was offered at premiums of 30-50 yuan/mt over the SHFE 2010 lead contract. Price advantages prompt some downstream users to purchase primary lead. In addition, some primary lead smelters conducted maintenance this week. These led to the decline social inventories of lead ingots.
Next week, some primary lead smelters in Guangdong plan to undergo maintenance, and downstream users will stockpile for the upcoming National Day holiday, which are likely to further weigh on lead social inventories.