SHANGHAI, Jun 7 (SMM) – Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin increased 7,800 mt from June 4 and rose 13,600 mt from May 31 to 118,500 mt as of June 7, hitting a record high since May 2015, an SMM survey showed.
Production declined simultaneously on supply and demand sides, with the decrease more significant at the consumption end. Dragon Boat Festival is approaching this week. Some downstream companies are making purchase on demand, and some are planning for holidays. At the same time, the last batch of delivered goods will arrive at the warehouse this week for the settlement of SHFE 2106 lead contract on June 15, the first working day after the Dragon Boat Festival holiday. Social inventories of lead ingots are expected to further increase.