Pre-Holiday Downstream Cargo Pick-Up Expands Decline in Lead Ingot Social Inventory [SMM Lead Ingot Social Inventory]

SMM, January 23: According to SMM, as of January 23, the total social inventory of lead ingots in five regions tracked by SMM reached 39,100 mt, a decrease of 7,600 mt compared to January 16 and a decrease of 6,800 mt compared to January 20. As the Chinese New Year holiday approaches, migrant workers are returning to their hometowns, and upstream and downstream enterprises in the lead industry chain are gradually entering a holiday state. Since the first batch of downstream enterprises ceased operations and went on holiday last week, the number of enterprises on holiday has further increased with the arrival of the Little New Year in both northern and southern regions. The last batch of enterprises is also expected to go on holiday on January 27-28. Starting last week, the number of logistics vehicles has gradually decreased, freight costs have risen accordingly, and there have been multiple instances of replacing logistics vehicles for lead ingot shipments, resulting in extended transportation cycles. By this week, the vast majority of downstream enterprises have ceased purchasing lead ingots, focusing instead on receiving previously ordered lead ingots. Consequently, the decline in social inventory of lead ingots is mainly due to the transfer of lead ingots purchased last week or earlier this week to downstream enterprises' in-plant inventory. With the arrival of the Chinese New Year next week, spot lead ingot transactions will be suspended, logistics will halt, and the market will fully enter a holiday state.