SHANGHAI, Jun 18 (SMM) - Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin increased 4,300 mt from the prior week and rose 1,500 mt from June 15 to 130,000 mt as of Friday June 18, hitting a record high since March 2015, an SMM survey showed.
Primary lead smelters maintained stable production this week, but downstream consumption was weak, and the users held a wait-and-see stance as lead prices fluctuated at high levels early in the week. The smelters’ deliveries slowed down markedly after the settlement of 2106 lead contract, and some smelters saw increase in inventories, which means that the transferred stocks from lead smelters to social warehouses declined. Therefore, the inventories of lead ingots increased slower amid the low consumption. Lead prices fell to near 15,000 yuan/mt again later this week, approaching the cost line, which suppressed the smelters’ enthusiasm for production. Lead ingot social inventories are expected to increase further slower next week.