Weak Consumption Combined with Delivery and Warehouse Transfer, Social Inventory of Lead Ingots Continues to Increase [SMM Lead Ingot Social Inventory]

SMM February 13 News: According to SMM, as of February 13, the total social inventory of lead ingots in five major regions tracked by SMM reached 52,200 mt, an increase of 8,800 mt compared to February 6 and an increase of 6,100 mt compared to February 10. With only two working days remaining until the delivery of the SHFE 2502 lead contract, suppliers have increased warehouse transfers for delivery, especially in warehouses near major consumption areas. Social inventories of lead ingots in Jiangsu, Zhejiang, and Tianjin regions all showed varying degrees of growth. This week, upstream and downstream enterprises in the lead industry chain have mostly resumed production. Some downstream buyers purchased on dips as needed, and spot transactions marginally improved. However, due to issues with orders and worker availability, most enterprises had limited demand for lead ingots required for production. Spot discounts further widened compared to the beginning of the week. As of February 13, primary lead quotations from major production areas were quoted at discounts of 50 yuan/mt to premiums of 50 yuan/mt against the SMM 1# lead average price on an ex-factory basis. The spread between futures and spot prices widened to over 200 yuan/mt, even approaching 250 yuan/mt, which also increased suppliers' willingness to transfer to delivery warehouses. Next Monday marks the delivery date for the SHFE 2502 lead contract, and the transfer of delivery brands is expected to continue, with social inventories of lead ingots likely to maintain an upward trend.