Production cuts in secondary lead, coupled with suppliers offloading goods, led to an expanded decline in social inventory of lead ingots [SMM Lead Ingot Social Inventory].

SMM News, April 24: According to SMM, as of April 24, the total social inventory of lead ingots in five regions reached 46,200 mt, a decrease of 16,700 mt compared to April 17 and a reduction of 8,500 mt from April 21. This week, lead prices held up well, and with the approach of the month-end and the Labour Day holiday, suppliers actively offloaded goods and successively lowered their premiums and discounts against the SHFE lead 2505 contract. During this period, spot primary lead quotations in the Jiangsu, Zhejiang, and Shanghai markets decreased from a premium of 30-100 yuan/mt against the SHFE lead 2505 contract at the beginning of the week to near parity. Meanwhile, raw material prices such as scrap batteries remained firm, leading to expanded losses for secondary lead smelters. The number of production cuts by secondary lead smelters in Anhui, Jiangsu, and Jiangxi increased, tightening the supply in the secondary refined lead market. Some downstream buyers preferred to purchase low-priced sources from nearby warehouses, resulting in an expanded decline in lead ingot social inventory.