Supply-Demand Imbalance Shifts While Social Inventory of Lead Ingots Continues to Decline [SMM Survey]

SMM, January 2: According to an SMM survey, as of January 2, the total social inventory of lead ingots across five regions tracked by SMM stood at 52,800 mt, down by 1,000 mt compared to December 26 and by approximately 300 mt compared to December 30. According to the survey, this week, the smog warning in Anhui was lifted, and local secondary lead smelting enterprises gradually resumed production. However, with the decline in lead prices, the profit margin for secondary lead narrowed, prompting smelting enterprises to stand firm on quotes. As of today, secondary refined lead was quoted at premiums of 25-125 yuan/mt against the SMM 1# lead average price on an ex-factory basis, with some quotes reaching premiums of 325 yuan/mt, exceeding the price of primary lead. Meanwhile, primary lead smelting enterprises in Hunan have yet to resume production due to environmental protection-driven production restrictions, leading to limited spot supply in the electrolytic lead market. Spot orders for electrolytic lead were quoted at premiums of 50-300 yuan/mt against the SMM 1# lead average price on an ex-factory basis, prompting some downstream enterprises to continue consuming inventory from social warehouses.