The Impact of Environmental Protection on the Lead Market Eases, Social Inventory Decline Slows [SMM Survey]

SMM News on December 30: According to an SMM survey, as of December 30, the total social inventory of lead ingots across five regions tracked by SMM stood at 53,100 mt, down by 3,100 mt compared to December 23 and by over 700 mt compared to December 26. According to the survey, the impact of environmental protection-driven production restrictions on primary and secondary lead smelting enterprises has eased. Over the weekend, the smog warning in Anhui was lifted, and secondary lead smelting enterprises are gradually planning to resume production. However, environmental protection impacts persist in Hunan, coupled with some lead smelting enterprises undergoing maintenance, resulting in limited lead ingot supply. Since last Friday, lead prices have dropped significantly, leading to a strong wait-and-see sentiment among downstream enterprises, while some have shown interest in buying the dip as needed. The spot order market has seen relatively improved activity, and the social inventory of lead ingots continues to decline. After the New Year holiday, attention should be paid to the potential resumption of production by lead smelting enterprises in Hunan, as well as the impact of year-end inventory checks, holidays, and the resumption of regular procurement by downstream enterprises on consumption expectations.