SHANGHAI, Oct 29 (SMM) – The social inventory of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin decreased by 6,300 mt from October 22 and fell 6,100 mt from October 25 to 180,600 mt as of October 29, hitting a new low since August 6, 2021.
The smelters of the major primary lead deliverable brands were under maintenance this week, and the smelters cut the production by 20-40% under the power rationing. The supply declined significantly. Anhui cut off the power for the line change, restricting the production of some secondary lead smelters, which reduced the lead ingot supply to Jiangsu, Zhejiang, and other consumption areas. The downstream users turned to purchase from the social warehouses, and the total social inventory of lead ingots dropped.
The restored profits of secondary lead have boosted the production, but the power rationing and the air pollution control will still affect the production in November. The deliverable brands of primary lead may increase the maintenance. The social inventory of lead ingots is expected to fall slightly.