Social inventories of lead ingots surged 9,500 mt this week

SHANGHAI, Dec 11 (SMM) – Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin expanded 9,500 mt from the prior week to 50,000 mt as of Friday December 11.

As new secondary lead capacity in Anhui and Tianjin came online, lead supply rose significantly, but battery makers in December have purchased lead ingots only as required in order to recoup funds. Meanwhile, discounts of spot lead against the SHFE 2101 lead contract expanded to 100-50 yuan/mt as of December 11, which prompted sellers to deliver cargoes to social warehouses.

Lead social inventories are likely to continue to build up next week as new secondary lead capacity is likely to rise further.