Environmental Protection-Driven Production Restrictions VS Weak Consumption: Lead Ingot Social Inventory Still Slightly Increased [SMM Survey]

According to SMM survey, as of October 31, the total social inventory of lead ingots in five regions surveyed by SMM reached 72,700 mt, an increase of 400 mt compared to October 24 and an increase of 900 mt compared to October 28. According to the survey, the production of primary lead smelting enterprises was relatively stable this week, while the environmental protection impact in Anhui, Henan, and other regions had not yet ended. In particular, vehicle movement in Henan was restricted due to fog warnings, which extended the delivery cycle of cargoes self-picked up from production site. Additionally, lead prices fluctuated downward during the week. Although some downstream enterprises intended to engage in bargain hunting, more downstream enterprises remained in a wait-and-see state, leading to slow digestion of lead ingot social inventory. Furthermore, as November approached, the delivery of the SHFE lead 2411 contract was put on the agenda. Coupled with the widening spread between futures and spot prices, some holders planned to transfer inventory for delivery, resulting in a slight increase in lead ingot social inventory.