Social inventories of lead ingots rose 12,500 mt on week

SHANGHAI, Jul 9 (SMM) - Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin increased 12,500 mt from the prior week and rose 9,600 mt from July 5 to 143,500 mt as of Friday July 9, hitting a record high since January 2015, an SMM survey showed.

The supply of primary and secondary lead increased steadily this week, but downstream consumption remained low as lead prices fluctuated at high levels. Some downstream users preferred to purchase from smelters on their rigid demand. Secondary refined lead was traded at a discount of 500 yuan/mt against the average price of SMM 1# lead. The price spread between spots and futures remained around 400 yuan/mt. Holders continued to deliver goods to social warehouses. In addition, Shanghai Futures Exchange expanded two warehouses to provide more storage capacity for later deliveries. The inventories of lead ingots are expected to keep rising next week.