Downstream Restocking Limited After Holiday, High In-Plant Inventory at Primary Lead Smelters [SMM Weekly Review of Primary Lead Inventory]

        It is understood that as of May 9, the in-plant inventory of primary lead delivery brands stood at 23,200 mt, an increase of 8,100 mt WoW.

        After the Labour Day holiday, lead prices continued to decline, dampening the enthusiasm of lead smelters for shipments. Meanwhile, the consumption in the lead-acid battery market remained weak, and the restocking demand of downstream enterprises after the holiday was limited, making it difficult for smelters to destock. Next week, the in-plant inventory of primary lead smelters is expected to turn downward. On the one hand, more secondary lead enterprises are reducing or halting production, alleviating the pressure of lead ingot inventory buildup. On the other hand, the SHFE lead 2025 contract will enter delivery next week. In particular, the spot orders of primary lead in major producing areas are quoted at discounts of around 200 yuan/mt against the SHFE lead 2506 contract, which preliminarily meets the delivery conditions in terms of the spread between futures and spot prices. It is expected that the likelihood of delivery brands being transferred to delivery warehouses will increase, thereby reducing the pressure on in-plant inventory.