SHANGHAI, Aug 6 (SMM) - Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin expanded 10,900 mt from last Friday July 30 to 183,500 mt as of August 6. This was up 5,800 mt from Monday August 2 and registered a new high since April 2014.
Under the pandemic control, the transportation in some medium- and high- risk regions in Jiangsu was impeded. The sales and purchase of some companies in Yangzhou and Gaoyou were affected because the transportation of lead ingot and lead-acid battery was hindered. Therefore, the battery companies reduced purchase on raw materials.
At the same time, lead smelters and holders continued to deliver goods to social warehouses, and the inventories increased significantly in the warehouses in Shanghai and Jiangsu.
The inventories in Guangdong declined as most secondary lead smelters reduced or suspended production amid the environmental protection inspections.
The supply of lead ingot will stand stable next week, and the consumption is mild despite the traditional peak season. Lead ingot social inventories are expected to further increase.