SHANGHAI, May 31 (SMM) —Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin increased 1,800 mt from last Friday May 28 to 105,000 mt as of May 31. This was up 11,000 mt from last Monday May 24, setting a record high since May 2015.
Lead-acid battery plants further reduced production in the off season, and the lead demand weakened. At the same time, the growing secondary lead supply squeezed the market of primary lead, which was mostly offered at wide discounts. On the other hand, lead futures prices were higher than spot prices, and holders kept delivering the futures amid the wide price gap, leading to the continuous increase in social inventories. However, some commonly used delivery warehouses were full, and the increase slowed down.