Social inventories of lead ingots increased 1,000 mt this week

SHANGHAI, Nov 27 (SMM) – Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin expanded 1,000 mt from the prior week to 38,800 mt mt as of Friday November 27.

While lead prices surged this week, end-user consumption of lead-acid batteries was moderate. Most of the battery makers were cautious about restocking, and large-scale producers mainly purchased under long-term contracts. Discounts of secondary refined lead expanded to 300-350 yuan/mt, ex-works, against the average price of SMM 1# lead. The large price spread between spot and futures lead prices prompted sellers to deliver goods to social warehouses. Secondary lead smelters may likely to step up production next week amid recovered profits. Lead social inventories are expected to rise further next week as sellers continue to deliver refined lead to social warehouses.