Suppliers' Sentiment for Transferring to Delivery Warehouse Surges, Social Inventory of Lead Ingots Further Increases [SMM Lead Ingot Social Inventory]

SMM, February 24: According to SMM, as of February 24, the total social inventory of lead ingots across five regions tracked by SMM reached 59,900 mt, an increase of 6,600 mt compared to February 17 and approximately 400 mt higher than February 20. Following the completion of delivery for the SHFE lead 2502 contract last week, production at primary and secondary lead smelters further recovered (including those affected by the Chinese New Year break, equipment maintenance, and the commissioning of new capacity). The supply of lead in the spot market remained relatively ample. During this period, the spread between futures and spot prices in major production regions was significant, with primary lead quotations against the SHFE lead 2503 contract generally at a discount of over 240 yuan/mt ex-factory. Suppliers showed increased reluctance to sell at large discounts, shifting from selling to transferring to delivery warehouses. In Henan, there were already instances of queuing for cargo pick-up and delivery warehouse transfers. Recently, lead ingots have been moving from in-plant inventory to social warehouses, and this "inventory transfer" is expected to continue in the short term, with social warehouse inventories of lead ingots likely to maintain their upward trend.