SHANGHAI, Aug 5 (SMM) - As of August 5, the social inventory of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin was 61,800 mt, down 10,300 mt from last Friday (July 29) and down 6,200 mt from Monday (Aug 1).
According to SMM, most large-sized enterprises were in full production and purchased more lead ingots. However, medium and small-sized enterprises rarely reached full production, and were more cautious about procurement. In addition, although the inventories in Guangdong and Zhejiang fell intensively, the inventories of other regions increased slightly due to the transaction difference and the expectation of delivery. At present, the price difference between the futures and the spots in some areas exceeded 200 yuan/mt ten days before the delivery of SHFE 2209 contract. Therefore, the cargo holders are expected to increase the delivery. Meanwhile, the sharp decline of the inventories in Guangdong and Zhejiang was caused by the improved consumption. In addition, cargo holders transferred the stocks before the delivery, which may also lead to the decline in the inventory. Market should pay further attention to the changes in inventory next week before the delivery.