According to an SMM survey, as of September 5, the total social inventory of lead ingots in five regions reached 31,500 mt, an increase of 15,800 mt compared to August 29, and an increase of 11,200 mt compared to September 2.
The survey indicates that recently, the focus of lead prices has gradually shifted downward, and primary lead smelters have generally actively shipped. As of today (September 5), the ex-factory prices of spot orders are quoted at a discount of 150-50 yuan/mt against SMM 1# lead average price. However, downstream enterprises are reluctant to purchase due to fears of further price drops, leading more holders to transfer their stocks to delivery warehouses in preparation for the upcoming September delivery. The weekly increase in social inventory of lead has exceeded 10,000 mt. Next week is the week before the Mid-Autumn Festival, and some downstream enterprises plan to take a holiday. The pre-holiday stockpiling and holiday reduction will offset each other, making it difficult to expect an improvement in lead consumption. Additionally, next week is also the week before the delivery of the SHFE lead 2409 contract, and the transfer of stocks to delivery warehouses by holders is expected to continue, leading to a further increase in social inventory of lead.
