Social Inventory of Lead Ingot Continued to Increase due to the Restocking Before National Day Holiday

SHANGHAI, Sep (SMM) - As of September 23, the social inventory of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin was 77,800 mt, down 6,100 mt from last Friday (September 16) and 5,700 mt from Monday (September 19).

According to research, amid the peak season of lead-acid battery and approaching National Day holiday, downstream enterprises purchased as needed for restocking. Secondary lead smelters continued to reduce the production last week, and held the prices firm. The price spread between refined lead and secondary refined lead narrowed to 0. Therefore, downstream enterprises were more willing to purchase primary lead. However, the current in-plant inventory of primary lead was low, hence some downstream purchased nearby. As a result, the social inventory of lead ingots declined. Before the National Day, some downstream enterprises may continue to restock this week. In addition, some smelters have maintenance plans this week. Therefore, the social inventory of lead ingots may further decline in the follow-up period.