Some Regions Reduce Secondary Lead Production Due to Environmental Protection, Social Inventory Slightly Decreases [SMM Survey]

According to SMM survey, as of October 28, the total social inventory of lead ingot in five regions reached 71,800 mt, an increase of 4,300 mt compared to October 21, and a decrease of about 500 mt compared to October 24.

According to the survey, recently, secondary lead enterprises in Anhui, Jiangsu, Hebei, and Henan have reduced production due to environmental protection impacts, resulting in a decrease in the circulating supply in the spot market. Smelters also stand firm on quotes, with some regions quoting secondary refined lead at premiums of 0-50 yuan/mt ex-factory against SMM 1# lead. The price spread between secondary lead and primary lead has led downstream enterprises to prefer primary lead, causing a slight decrease in social inventory. By the end of October, environmental protection inspections and smog-related production restrictions in relevant regions are expected to end, and attention will be focused on the resumption of production by smelters.