SHANGHAI, Nov 1 (SMM) – The social inventory of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin decreased by 2,800 mt from October 29 and fell 8,900 mt from October 25 to 177,800 mt as of November 1.
The primary lead smelters in Henan recovered from the power rationing, while the power rationing in Anhui restarted, restricting the production of some secondary lead smelters. The power rationing in Jiangsu and Zhejiang was eased, and the smelters mostly raised the operating rates as the downstream orders increased amid rising lead prices. The social inventory of lead ingot further decreased.
The smelters were more willing to deliver stocks to social warehouses amid the wide price spread between spots and futures. SMM will monitor the impact of the primary lead brand deliveries on the social inventory of lead ingots.