SHANGHAI, Aug 23 (SMM) – Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin increased 1,600 mt from August 20 and rose 1,700 mt from August 16 to 200,000 mt as of August 23.
Downstream users were more willing to purchase amid the previously falling lead prices, and some secondary lead companies reduced production or held back cargoes after the secondary lead prices dropped below the break-even point. Some users with rigid demand turned to purchase in the trade market. The increase in the social inventory of lead ingot continued to slow down.
The power curtailment in primary lead smelters has been basically lifted this week. Some secondary lead smelters that reduced or halted production due to losses have resumed production as the lead prices rebound. Lead consumption is growing steadily. The social inventory of lead ingots is expected to increase slightly.