Lead Prices Rise, Stimulating Downstream Procurement; Social Inventory Continues to Decline [SMM Survey]

According to an SMM survey, as of December 2, the total social inventory of lead ingots in five regions was 57,000 mt, a decrease of 6,300 mt compared to November 25, and a decrease of 1,000 mt compared to November 28.

The survey indicated that recent lead prices have fluctuated upward, easing the wait-and-see sentiment among downstream enterprises, which have gradually started inquiring and purchasing. Consequently, the social inventory of lead ingots has declined. Meanwhile, primary lead smelting enterprises have experienced both maintenance and resumption, and the profitability of secondary lead has improved, boosting the production enthusiasm of smelting enterprises, leading to an accumulation of in-plant inventory. During this period, the ex-factory quotations for cargoes self-picked up from production sites in major primary lead production areas were at premiums of 50-100 yuan/mt against the SMM 1# lead average price. In contrast, the prices of secondary refined lead varied significantly by region, with spot order quotations ranging from discounts of 100 yuan/mt to premiums of 100 yuan/mt against the SMM 1# lead average price. Some downstream enterprises with rigid demand preferred the lower-priced secondary lead, causing the decline in social inventory of lead ingots to continue to slow.