Lead Ingot Social Inventories Up 1,100 mt over Weekend

SHANGHAI, September 6 (SMM) – Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin increased 1,100 mt from September 3 and rose 1,400 mt from August 30 to 207,700 mt as of September 6.

More secondary lead smelters reduced production after lead prices fell below the break-even point last week, which led to the slower increase in the social inventories of lead ingots.

Smelters in Guangdong were under environmental protection inspections, so the local secondary lead supply was tight, and downstream users tended to purchase primary lead. The lead ingot inventory in Guangdong declined.

Lead prices rebounded this week, recovering profits of secondary lead, and some smelters resumed production. The pandemic control was loosened in Jiangsu, and the transportation restrictions were alleviated. Lead-acid battery plants also started to resume production. Supply and demand grew simultaneously, and lead ingot social inventories may extend increase.