SHANGHAI, Sep 3 (SMM) – Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin increased 7,100 mt from August 27 and rose 300 mt from August 30 to 206,600 mt as of September 3.
Lead prices fell below 15,000 yuan/mt, secondary lead declined below the cost line and losses at smelters increased. Primary and secondary lead smelters held a wait-and-see outlook. Shipments at traders were normal. Secondary lead smelters reduced output in the second half of the week. Thus, social inventories of lead ingots rose sharply on the week, but the increment slowed from early week. Cargoes at some smelters will be transferred to warehouses in approaching the deliveries. Secondary lead smelters still suffer losses at the moment and some smelters reduced their output. The increase for social inventories of lead ingots is expected to slow.