SHANGHAI, Jan 21 (SMM) – The social inventory of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin decreased 3,800 mt from January 14 and 2,200 mt from January 17 to 88,300 mt as of January 21.
Considering that the logistics will be stopped during the Chinese New Year holiday, the downstream enterprises were stocking up the raw materials. However, the transportation of lead ingots was interrupted by the COVID-19 pandemic and early CNY holidays in some regions, so the users tended to purchase from nearby regions. As such, the inventories continued to fall in Jiangsu and Shanghai, and the total social inventory declined.
Most of the downstream battery producers will start to take holidays next week, while the primary lead will basically maintain their production, which may result in the increase in the inventories. And the stocks are likely to rise more significantly at smelters due to the stopped logistics.