SHANGHAI, July 22 (SMM) - As of July 22, the social inventory of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin was 78,700 mt, down 14,700 mt from last Friday (July 15) and down 12,300 mt from Monday (July 18).
According to SMM survey, due to the low lead prices last week, most downstream enterprises purchased intensively on dips in the trading market as primary lead and secondary lead smelters were reluctant to sell at low prices. As the delivery date of SHFE 2207 contract fell on last Friday, the delivery did not end completely until this week. In addition, the traders delivered the pre-sold goods to the downstream. Therefore, the inventories in the major warehouses declined significantly and the social inventory of lead ingots dropped by more than 10,000 mt. The supply of lead ingots will increase steadily next week. As the lead prices fluctuated at a high level this week, most downstream companies mainly digested the inventories. In addition, after July 25, most battery companies will start to receive a new round of long-term orders. Therefore, the demand for market supply will further decline and the decline of social inventory of lead ingots may slow down after the delivery of the pre-sale goods is finished.