SHANGHAI, Sep 17 (SMM) – Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin increased 4,800 mt from September 10 and rose 700 mt from September 13 to 215,500 mt as of September 17.
The delivered cargoes early this week continued to flow into stocks. Shipments at primary lead and secondary lead smelters declined sharply as lead prices continued to weaken in the second half of the week, during which discounts of secondary lead shrank. Some secondary refined lead was quoted with flat against SMM #1 lead average price, almost no price difference with refined lead. Downstream producers began to properly restock primary lead while lead stocks in some warehouses fell slightly. The increase of the overall inventory slowed from early this week. In addition, the secondary lead smelters will maintain a slight loss next week, and the new production capacity is about to be released soon. In-plant stocks of lead ingots are expected to increase first, followed by social warehouse, due to the Mid-Autumn Festival holidays.