Lead Consumption Stagnated During National Day Holiday, Social Inventory Increased as Expected [SMM Survey]

According to the SMM survey, as of October 8, SMM lead ingot social inventory in five regions reached 53,400 mt, an increase of 10,100 mt compared to September 26; an increase of 7,900 mt compared to September 26.

According to the survey, after the National Day holiday, upstream and downstream enterprises in the lead industry chain generally resumed normal production. During the holiday, primary lead smelters mostly maintained normal production, while a few secondary lead enterprises took breaks. Downstream lead-acid battery companies mostly took holidays ranging from 1 to 7 days, leading to a temporary lack of consumption. Meanwhile, in October, the delivery of the SHFE lead 2410 contract is scheduled, prompting holders to gradually transfer lead ingots to delivery warehouses, resulting in an increase in social inventory of lead ingots. On the first trading day after the holiday, SHFE lead showed a trend of jumping initially and then pulling back, with many downstream enterprises adopting a wait-and-see attitude. Some enterprises continued to use pre-holiday lead ingot inventories, leading to limited post-holiday restocking. Additionally, with the resumption of production and new capacity from lead smelters, along with pre-delivery inventory transfers, the social inventory of lead ingots may continue to rise.