Lead Prices Rise to Boost Consumption; Lead Ingot Social Inventory Rises First and Then Falls [SMM Lead Ingot Social Inventory]

As of March 6, according to SMM, the total social inventory of lead ingots across five regions tracked by SMM reached 64,800 mt, an increase of 1,800 mt compared to February 27, but a decrease of 5,400 mt compared to March 3. This week coincided with the "Two Sessions" period, during which numerous policies aimed at boosting the economy were announced. Non-ferrous metals generally turned positive, and SHFE lead also broke away from the recent tug-of-war between bulls and bears in the latter half of the week. As of the morning close on March 6, the most-traded SHFE lead contract reached a high of 17,440 yuan/mt, marking a three-month high. Following the rise in lead prices, downstream enterprises' pessimistic sentiment toward the market outlook eased somewhat, and they began purchasing as needed. Inventory levels in warehouses located in the primary consumption areas of Jiangsu and Zhejiang reversed their trend and started to decline. Meanwhile, the production enthusiasm of primary and secondary lead smelters increased, supported by the completion of maintenance and the commissioning of new capacity, leading to a further rise in lead ingot supply. As a result, social inventory showed an upward trend compared to last week. Next week, with the delivery date of the SHFE lead 2503 contract approaching, attention should be paid to the potential transfer of delivery brands to delivery warehouses.