Increased production cuts in secondary lead lead to a slight decline in social inventory of lead ingots [SMM social inventory of lead ingots]

        SMM News on May 12: According to SMM, as of May 12, the total social inventory of lead ingots across five locations reached 47,100 mt, an increase of 1,200 mt from May 6, and a decrease of over 400 mt from May 8.

        This week, the SHFE lead 2505 contract is expected to enter the delivery phase. However, there has been no significant movement of delivery brands being transferred to delivery warehouses, with suppliers primarily focusing on spot cargo sales. Meanwhile, secondary lead smelters have been incurring substantial losses recently, coupled with insufficient scrap battery supply, leading to intensified production cuts by smelters. For instance, secondary lead enterprises in regions such as Anhui, Jiangsu, and Jiangxi have generally experienced production reductions or suspensions. The tightened supply has also reduced procurement options for downstream enterprises, with some preferring to source from nearby warehouses, resulting in a slight decline in the social inventory of lead ingots. Additionally, lead prices have gradually rebounded recently, slightly alleviating the losses of secondary lead producers. Before delivery, continued attention should be paid to the production cuts of secondary lead enterprises and the movement of delivery brands being transferred to delivery warehouses.