Frequent Production Cuts and Suspensions at Smelters Lead to Continued Decline in Lead Ingot Social Inventory [SMM Survey]

According to an SMM survey, as of November 25, the total social inventory of lead ingots in five regions surveyed by SMM reached 63,200 mt, a decrease of 21,800 mt compared to November 18, and a decrease of 1,200 mt compared to November 21.

The survey indicated that recently, lead smelters have frequently experienced production cuts and suspensions, mainly in the secondary lead sector, including regions such as Hebei and Anhui due to smog-related production restrictions. This week, primary lead smelters in Jiangxi and Guangdong entered maintenance, further reducing lead supply, causing downstream enterprises to continue consuming social warehouse inventory. Additionally, due to the limited circulation of lead ingots, many lead smelters stood firm on quotes, especially as the price difference between secondary refined lead and primary lead was minimal, with some regions even seeing secondary refined lead priced 50-100 yuan/mt higher ex-factory than primary lead. Furthermore, the smog warnings in regions such as Anhui were lifted this week, and the resumption of production in these areas needs to be monitored.