SHANGHAI, Jan 28 (SMM) – The social inventory of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin decreased 2,800 mt from January 21 and 1,100 mt from January 24 to 85,400 mt as of January 28.
The logistics services have basically stopped on account of imminent Chinese New Year holiday and strict COVID-19 pandemic control, hence long-distance lead ingot transport was unavailable in the past week, according to SMM research. Some downstream participants that were still in production, mainly in Zhejiang and Jiangsu, have completed taking the last batch of orders. The local inventory in places like Guangdong and Tianjin have been rising for two straight weeks amid shrinking demand.
Looking into next week, there are both primary and secondary lead smelters producing in shifts, while the downstream lead-acid battery manufacturers have basically closed for CNY holiday. The market shall keep an eye on the possibilities of inventory accumulation post the holiday.