The Widening Spread Between Futures and Spot Prices Promotes Transfer to Delivery Warehouse, Social Inventory of Lead Ingots Rises to a Nearly 3-Month High [SMM Lead Ingot Social Inventory]

Published: Feb 20, 2025 12:34

Save

[SMM Lead Ingot Social Inventory: Widening Spread Between Futures and Spot Prices Promotes Transfer to Delivery Warehouse, Social Inventory of Lead Ingots Rises to a Nearly 3-Month High] After the Chinese New Year holiday, upstream and downstream enterprises in the lead industry chain have mostly resumed normal production. In particular, the production of secondary lead enterprises has increased, coupled with the commissioning of new capacity in regions such as Guizhou and Jiangxi. Overall, the supply growth has outpaced demand, and the trend of inventory buildup for lead ingots remains unchanged...

As of February 20, according to SMM, the total social inventory of lead ingots in five major regions tracked by SMM reached 59,600 mt, an increase of 7,300 mt compared to February 13 and an increase of 6,200 mt compared to February 17.

After the Chinese New Year holiday, upstream and downstream enterprises in the lead industry chain have resumed normal production. In particular, the production of secondary lead enterprises has increased, coupled with the commissioning of new capacity in regions such as Guizhou and Jiangxi. Overall, the supply growth has outpaced demand, and the trend of inventory buildup for lead ingots remains unchanged. Currently, supply in the two major lead-producing regions, Henan and Anhui, is stable with a slight increase. However, downstream enterprises, due to the mediocre performance of end-use consumption in the lead-acid battery market, have shown low enthusiasm for production and procurement, relying more on just-in-time procurement, which cannot absorb additional lead cargoes. As of February 20, ex-factory quotations for cargoes self-picked up from production sites in Henan for primary lead were quoted at premiums of -260 to -240 yuan/mt against the SHFE 2503 contract. The widening spread between futures and spot prices has increased suppliers' willingness to transfer to delivery warehouses. The movement of in-plant inventory to delivery warehouses by smelters has not ceased despite the conclusion of the previous delivery cycle. It is expected that the social inventory of lead ingots will continue to rise in the short term.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

20 hours ago

Lead Prices Stagnant, Smelters Maintain Firm Offers Amid Losses

Lead prices were in the doldrums, while secondary lead smelters maintained firm offers due to losses. The mainstream spot order ex-factory prices including tax narrowed the discount to the SMM #1 lead average price by 100 yuan/mt, shifting to a premium of 0–25 yuan/mt, with some smelters halting offers and sales.

20 hours ago

"Domestic Secondary Crude Lead Market Slows as Holidays Approach, Smelters Halt Production"

Pre-holiday stockpiling by downstream enterprises had largely concluded, and a few had already entered the holiday period, completely suspending procurement. Next week, secondary lead smelters will enter a concentrated wave of production halts and holidays, resulting in sluggish trading activity in the spot market. Offers for spot refined lead orders were sparse, with prices moving in line with the market.

20 hours ago

Sluggish Transactions in Domestic Secondary Crude Lead Market, Prices at 15,250-15,400 Yuan/mt

The domestic secondary crude lead market experienced sluggish transactions. As of February 6, 2026, the ex-factory tax-exclusive offers for domestic secondary crude lead stood at 15,250-15,400 yuan/mt. Downstream refined lead and alloy smelters gradually entered the holiday period, showing weak stockpiling willingness. Overseas lead ingot suppliers basically halted transactions with China due to poor consumption in the Chinese market, with only some previously concluded shipments maintaining normal in-transit transportation. The trading atmosphere in the secondary crude lead market will continue to weaken next week.

20 hours ago