The price spread advantage led to a consumption preference for primary lead, resulting in a further decline in social inventory [SMM Lead Ingot Social Inventory].

Published: Apr 21, 2025 14:27 (GMT+8)

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【SMM Lead Ingot Social Inventory: Price Spread Advantage Leads to Consumption Preference for Primary Lead, Further Decline in Social Inventory】 Recently, lead prices have held up well, with suppliers actively selling. The mainstream production areas' primary lead quotations against the SHFE 2505 contract were at discounts of 100-0 yuan/mt ex-factory. The spread between futures and spot prices is relatively narrow, making it unsuitable for transfer to delivery warehouses...

SMM April 21 News: According to SMM, as of April 21, the total social inventory of SMM lead ingots in five regions reached 54,600 mt, a decrease of 12,000 mt compared to April 14, and a reduction of 8,300 mt from April 14. Recently, lead prices have held up well, with suppliers actively selling. The ex-factory quotations for primary lead in mainstream production areas were at premiums of -100~0 yuan/mt against the SHFE 2505 contract. The relatively narrow spread between futures and spot prices made it unsuitable for transferring to delivery warehouses, leading suppliers to prefer ex-factory cargo pick-up, resulting in reduced arrivals at social warehouses in the short term. Meanwhile, the previous round of lead ingot delivery cargoes re-entered the market, prompting downstream companies to opt for nearby procurement, with noticeable inventory reductions in social warehouses in Jiangsu, Zhejiang, and Tianjin. Additionally, the continuous rise in scrap battery prices has left secondary lead producers in a loss-making position. In some regions, secondary refined lead quotations were at parity with the SMM 1# lead average price ex-factory, further driving downstream just-in-time procurement towards primary lead.

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