The inventory of lead ingots across China’s five major markets added 2,400 mt MoM to 69,800 mt as of December 29. Lead ingot social stocks recorded 66,100 mt as of January 8.
In December, primary lead smelters resumed after maintenance, and the supply of lead ingots increased compared with the previous month. Due to insufficient supply of scrap, secondary lead smelters in some important production areas had to reduce and suspend production. Meanwhile, the haze in late December had a greater impact, forcing all secondary lead smelters in Anhui to stop production. This expanded the lead ingot supply gap sharply. In the final month of 2023, upstream and downstream companies were actively liquidating inventories and withdrawing funds, which caused the procurement of lead ingots to stagnate in late December. In January, an increased number of smelters in the primary lead sector undergo maintenance. This, coupled with the resumption of normal procurement by downstream companies, will lower lead ingot inventory.
