SHANGHAI, Sep 24 (SMM) – The social inventory of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin increased 500 mt from September 17 and rose 1,200 mt from September 13 to 216,000 mt as of September 24.
The lead prices kept falling sharply in the domestic and overseas markets after the Mid-Autumn Festival holiday. The losses of the lead smelters expanded. Both primary and secondary lead smelters held back cargoes, and some smelters offered quotations at premiums. The premiums of secondary refined lead stood at 0-100 yuan/mt over the average SMM #1 lead price.
The downstream companies maintained purchase for the restocking on rigid demand, and some companies made purchase at lower prices. Hence the increase in the social inventory of lead ingots slowed down amid the market consumption.
The intensified power rationing in Anhui, Guangdong, Hunan, and other regions will restrict the production in local primary and secondary lead smelters. The downstream users are expected to restock before the National Day holiday, and the lower supply may cause the decline in the social inventory of lead ingots.