According to SMM survey, the lead ingot social inventory across five major regions in China totalled 49,000 mt as of February 22, up 3,800 mt from February 8 and 1,800 mt from February 19.
Upstream and downstream companies in the lead industry chain resumed production one after another, and spot market transactions gradually recovered last week. Some lead-acid battery companies had not yet fully digested their pre-holiday lead ingot reserves, and were not very enthusiastic about replenishing their stocks after the holiday. In addition, due to the recent continuous decline in lead prices, the industry saw a strong risk aversion and wait-and-see sentiment, and the lead ingot procurement was also poor. Some downstream companies were mainly buying under long-term orders. Therefore, the inventory of lead ingots in social warehouses continued to increase. This week, lead-acid battery companies will fully resume production and pay attention to the realisation of post-holiday replenishment. Due to the decline in lead prices, secondary lead companies have meager profits, and some smelters are slow to resume production, which may cause the market to consume part of the stocks accumulated during the holiday.
