The regional tightening of lead ingot supply has led to an expanded decline in social inventory. [SMM Lead Ingot Social Inventory]

SMM News on March 27: According to SMM, as of March 27, the total inventory of SMM lead ingots in five social warehouses reached 69,200 mt, a decrease of 4,800 mt compared to March 20, and a decrease of 2,700 mt compared to March 24. This week marked the first week after the delivery of the SHFE lead 2503 contract, with delivered goods re-entering the market. Coupled with the upward fluctuation of lead prices, suppliers were active in selling. During this period, the premium of warrant quotations decreased, shifting from a premium of 0-50 yuan/mt against the SHFE lead 2504 contract last week to a discount of 30-0 yuan/mt against the SHFE lead 2504 contract. Meanwhile, primary lead smelters in Henan and other regions were under maintenance, while secondary enterprises faced higher costs for scrap batteries. Some major consumption areas saw secondary refined lead quotations at a discount of 50-0 yuan/mt ex-factory against the SMM 1# lead average price. Downstream enterprises primarily made just-in-time procurement, and due to regional supply tightening, some downstream companies opted for local procurement, thereby depleting social warehouse inventories.