Transfer to Delivery Warehouse and Inventory Relocation Volume Increase; Lead Ingot Social Inventory Jumps to a 4-Month High [SMM Lead Ingot Social Inventory]

As of March 17, according to SMM, the total social inventory of lead ingots across five regions tracked by SMM reached 71,700 mt, an increase of 5,500 mt compared to March 10 and 4,000 mt compared to March 13. Today marks the delivery date for the SHFE lead 2503 contract. Delivery-bound cargoes gradually arrived at warehouses over the weekend, pushing social inventory of lead ingots above the 70,000 mt threshold to a four-month high. Recently, lead prices have fluctuated upward, with the overall price center shifting higher. However, spot market transactions have been weaker than futures, with the spread between futures and spot prices remaining around 200 yuan/mt, prompting some suppliers to maintain an interest in transferring to delivery warehouses. Meanwhile, the in-plant inventory of major primary lead smelters has fallen below 10,000 mt (as of March 13, the weekly in-plant inventory of primary lead enterprises was 5,700 mt), suggesting that subsequent lead ingot transfers to warehouses may be limited. After delivery, the trend of inventory buildup in social warehouses may slow. Additionally, the import window for lead ingots briefly opened earlier, and certain imported lead is expected to arrive soon. Attention should be paid to its impact on ingot production and inventory levels.