Social inventories of lead ingots shrank 3,300 mt this week

SHANGHAI, Dec 31 (SMM) – Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin fell 3,300 mt from the prior week to 53,200 mt mt as of Thursday December 31, an SMM surveyed showed.

Secondary lead supply tightened in Guizhou as local environmental restrictions continued, and some refined lead smelters suspend sales as it approaches the end of the year. Premiums of secondary refined lead over the average price of SMM 1# lead stood at 0-50 yaun/mt, ex-works. These drove some downstream users to the trading market, which led to the decline in social inventories.

Lead ingot social inventories are expected to continue to fall after the New Year’s holiday as downstream users are going to stockpile before the Chinese New Year.