Social inventories of lead ingots fell sharply this week

SHANGHAI, Mar 19 (SMM)—Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin shrank 8,400 mt from last Friday March 12 to 59,200 mt as of March 19. This was down 9,800 mt from Monday March 15.

Cargoes entered markets after the delivery, and lead prices weakened, which prompted downstream users to restock on demand. Secondary refined lead was offered at discounts of 50-150 yuan/mt, ex-works, against the average price of SMM 1# lead this week, similar to primary lead prices, which drove buyers to primary lead.

Lead social inventories may continue to fall next week if the price spread between secondary and primary lead remains unchanged.