SHANGHAI, Aug 16 (SMM) – Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin increased 4,000 mt from August 13 and rose 9,400 mt from August 9 to 198,300 mt as of August 9.
With the approaching of the settlement day for August contract, the deliverable goods continued to flow into social warehouses. In addition, due to the power curtailment last week, both primary lead and secondary lead smelters have reduced the output, and the in-plant stocks of lead ingots fell against the increasing social inventories. The power curtailment has been alleviated this week, and many smelters are expected to resume production.
Downstream production in Jiangsu is still under the impact of pandemic control, and the consumption is hard to rebound. Social inventories are expected to keep rising.