According to SMM survey, the lead ingot social inventory across five major regions in China totalled 59,600 mt as of February 29, up 10,600 mt from February 22 and 4,800 mt from February 26.
In the second week after the Chinese New Year holiday, the resumption of production in the lead industry chain continued, contributing to output. The operating rate of downstream companies climbed, and the spot market transaction improved. Due to the large accumulation of lead ingots during the Chinese New Year holiday and moderate downstream consumption, inventory could not fall rapidly. The spot discounts expanded to 180-200 yuan/mt against the March and April contracts. The sellers delivered cargoes to warehouses. This week, a small number of lead smelters plan to undertake maintenance, which may ease the pressure on refinery inventories. However, the recovery for lead consumption will be limited. The growth of social inventories may continue in March.
