SHANGHAI, July 29 (SMM) - As of July 29, the social inventory of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin was 72,100 mt, down 6,600 mt from last Friday (July 22) and down 2,100 mt from Monday (July 25).
According to research, the downstream enterprises were less willing to pick up goods due to the high lead prices amid the end of the month. The lead ingot inventory across many warehouses further declined mainly because of the final delivery of the pre-sale goods in the early stage. Among them, the inventory in Guangdong fell significantly as the stocks may be transferred due to the follow-up impact of the warrants pledge scandal of aluminium. In addition, as both supply and demand increased, the spot premiums turned into discounts. For example, some deliverable brands in Henan shipped in discounts of 100 yuan/mt over the SMM1# average lead price and the basis between spot and futures once expanded to over 200 yuan/mt. The decline of lead ingot social inventory may further slow down next week as some cargo holders may prepare for the delivery of SHFE 2208 contract.