SHANGHAI, Jun 11 (SMM) - Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin increased 14,900 mt from the prior week and rose 7,100 mt from June 7 to 125,600 mt as of Friday June 11, hitting a record high since May 2015, an SMM survey showed.
Primary lead supply increased steadily as some smelters finished maintenance. Lead prices bottomed out, and the price spread expanded to about 200 yuan/mt. Spot holders are more willing to deliver goods to social warehouses as the settlement day is only 4 days away. Lead prices stood between 15,000 yuan/mt, and some downstream users made purchase at lower prices, but social inventories continued to increase.
Some large plants will maintain normal production during the Dragon Boat Festival, while most plants will have holidays for 1-3 days. Downstream plants are not likely to restock lead ingot immediately after the holiday. June 15 is the settlement day of SHFE 2106 contract, and more lead ingots may arrive at social warehouses during the holiday.