Social Inventory of Lead Ingot Fell as Consumption Resumed and Secondary Lead was Less Cost-effective

Published: Sep 05, 2022 14:58 (GMT+8)

Source: SMM

Save

As of September 5, the social inventory of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin was 69,900 mt, down 5,100 mt from last Friday (September 2) and 4,500 mt from last Monday (August 29).

SHANGHAI, Sep 5 (SMM) - As of September 5, the social inventory of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin was 69,900 mt, down 5,100 mt from last Friday (September 2) and 4,500 mt from last Monday (August 29).

According to the research, after the power rationing ended, enterprises in various places resumed the production. However, lead price fell and the losses of secondary lead smelters expanded. Therefore, smelters were less willing to ship and smelters in some places reduced the production. In this scenario, the price spread between refined lead and secondary refined lead almost narrowed to 0, hence the downstream enterprises tended to purchase refined lead. In addition, in September, amid the traditional peak season of lead-acid battery and the end of power rationing, some enterprises may further increase the production. Therefore, the demand for lead further increased. In addition, due to the decline in lead prices, downstream enterprises purchased on dips.

Inventory

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

51 mins ago

US dollar index pressure sends LME lead to near two-week low [SMM lead morning update]

[SMM Lead Morning Update: LME Lead Falls to Near Two-Week Low Under Strong US Dollar Index Pressure] SMM, September 29: Overnight, LME lead opened at $1,927/mt, and under the pressure of a strengthening US dollar index, LME lead drifted lower throughout the day...

51 mins ago

Fundamentals show a backwardation structure, and lead prices will consolidate in the short term [SMM Lead Morning Meeting Summary]

[SMM Lead Morning Meeting Summary: Fundamentals Show Backwardation Structure, Short-term Lead Prices to Consolidate] State Council Executive Meeting: Research and introduce policy measures to stabilize the real estate market and promote employment and income growth. As the National Day holiday approaches, lead-acid battery enterprises have largely completed pre-holiday stockpiling, and downstream enterprises are mainly picking up goods as needed before the holiday...

51 mins ago

15 hours ago

Chinese Secondary Lead Smelter Resumes Dismantling, Aims to Restart Crude Lead Line Post-Holiday

[Secondary lead production update] A small secondary lead smelter in south-west China has resumed its dismantling line and is expected to restart its crude lead smelting line after the National Day holiday.

15 hours ago