Suppliers Concentrate on Cargo Pick-Up and Inventory Transfer; Primary Lead Smelter Inventory Declines Further [SMM Weekly Review on Primary Lead Inventory]

SMM reported on February 28: According to sources, as of February 28, the in-plant inventory of primary lead from major delivery brands stood at 11,800 mt, down by 12,700 mt compared to February 21. This week, primary lead smelters experienced both maintenance and recovery, with slight production cuts observed among major delivery brands, alleviating the pressure of in-plant inventory accumulation for lead ingots. Additionally, February's lead long-term contracts were generally settled, prompting smelters to urge buyers to pick up goods. Meanwhile, the spread between futures and spot prices was significant during the week, with mainstream primary lead quotations against the SHFE lead 2504 contract at a discount of 250-200 yuan/mt ex-factory. This led suppliers to concentrate on picking up goods for transfer to delivery warehouses. Apart from direct shipments to downstream enterprises, other supplies were moved to social warehouses, resulting in a noticeable decrease in smelters' in-plant inventory.