According to the SMM survey, as of May 23, the total social inventory of lead ingots in five major markets in China was 58,400 mt, down 20,100 mt from Thursday May 16 and down 14,900 mt from Monday May 20.

According to the survey, primary lead smelters in Henan, Yunnan, and Hunan were under maintenance, while secondary lead enterprises in Anhui and Jiangxi continued to reduce or suspend production. The regional supply of lead ingots was tight, forcing downstream companies to purchase from social warehouses. After the delivery of the SHFE front-month contract, the sources were offered for sale again in the market, and most of the inventory was consumed last week. In the second half of the week, lead prices surged and then fell back, causing battery scrap traders to sell off due to fear of further price declines. That, together with the supplement of imported lead concentrate, eased raw material supply tightness. Lead ingot supply is expected to grow. If lead prices continue to fall, downstream procurement may pick up. Both supply and demand will grow, narrowing the decline in social inventory of lead ingots.