Regional Reduction in Primary and Secondary Lead Supply, Social Inventory Declines [SMM Lead Ingot Social Inventory]

SMM March 24 News: According to SMM, as of March 24, the total social inventory of lead ingots in five regions reached 71,900 mt, an increase of over 100 mt from March 17; a decrease of 2,100 mt from March 20. Recently, smelters in Henan region entered maintenance, and some smelters in Hunan region cut production due to insufficient raw materials, leading to a phased reduction in lead ingot supply. Spot lead was generally sold at a premium of 50-100 yuan/mt against the SMM 1# lead average price. Meanwhile, with a significant drop in lead prices, smelting profits shrank, especially as scrap battery prices remained high, pushing the profit margins of secondary lead enterprises close to the cost line. In key production areas, there were slight production cuts by secondary lead enterprises, and the regional price spread for secondary refined lead widened. In regions with low inventory, the discount for ex-factory secondary refined lead narrowed, reaching 0-50 yuan/mt against the SMM 1# lead price. After the decline in lead prices, downstream enterprises maintained just-in-time procurement, and the willingness to buy the dip improved, with some turning to receive goods from delivery warehouses, causing the social inventory of lead ingots to shift from an upward trend to a downward one.