Downstream Enterprises Generally Take Holidays Before Chinese New Year, Lead Ingot Inventory Buildup Is Expected to Rise [SMM Lead Ingot Social Inventory]

SMM January 27 News: According to SMM, as of January 27, the total social inventory of lead ingots across five regions tracked by SMM stood at 39,200 mt, down by 6,700 mt compared to January 20, but up by approximately 100 mt compared to January 23. With the arrival of the Chinese New Year, logistics across regions have largely come to a halt, and downstream enterprises have generally gone on holiday, leaving only a few companies still in operation. However, production is mainly focused on consuming their own lead inventory, as logistics no longer support spot transactions. Additionally, some primary and secondary lead enterprises are expected to conduct shift work during the Chinese New Year. On the supply side, production cuts and holidays are significantly less prevalent than on the consumption side. Post-holiday, the risk of inventory buildup for lead ingots is expected to be high, and due to the suspension of logistics, the inventory buildup will primarily be reflected in smelters' in-plant inventory.