SHANGHAI, Aug (SMM) - Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin expanded 10,800 mt from last Friday August 6 to 194,300 mt as of August 13. This was up 5,400 mt from Monday August 9 and registered a new high since April 2014.
The lead ingot inventories in major delivery warehouses increased this week with the approaching of the settlement of August contracts.
The stocks in Guangdong declined, as the supply of secondary lead was limited under the environmental inspections, and the resources from Hunan declined amid power curtailment.
The stocks in Jiangsu increased from last Friday, but declined from Monday this week. The COVID-19 pandemic restricted the logisctics from Jiangsu to other regions, which increased its consumption of local stocks. The production of some downstream battery companies was also restricted.
SHFE 2108 lead contracts will be settled next Monday, and more goods are expected to be delivered to warehouses this weekend. The power curtailment in Henan and Hunan has not been fully lifted. The increase in the social inventories of lead ingots is likely to slow down slightly.