Lead Ingot Social Inventories Up 1,100 mt on Week

SHANGHAI, Aug 27 (SMM) – Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin expanded 1,100 mt from last Friday August 20 to 199,500 mt as of August 27. This was down 500 mt from Monday August 23.

Lead prices surged this week. Some companies restocked for the small orders early this week after the delivery for long-term orders. Downstream companies were less willing to purchase amid the production for a new round of long-term orders later this week.

The supply of secondary lead loosened. With the recovered profits, the discounts of secondary refined lead quotations expanded to 300 yuan/mt (ex-factory) over the average price of SMM #1 lead, which diverted part of the rigid demand. The increase in the social inventories of lead ingot slowed down from the previous week.

Price spread between futures and spots narrowed this week, and smelters were less enthusiastic in delivery to social warehouses amid lower futures prices. If the price spread expands next week, more in-plant stocks may be transferred to social warehouses.