Operating rate of secondary lead is less than 40%, and it may be difficult to maintain the growth trend of finished lead inventory next week [SMM Weekly Review of Secondary Lead Inventory]

SMM May 16 Report:

As of May 16, 2025, the finished product inventories of secondary lead smelters stood at 20,740 mt, an increase of 3,350 mt WoW. This week, the sentiment of secondary lead smelters to ship goods remained low. A few enterprises expected an improvement in downstream lead-acid battery consumption in June, but currently, the in-plant inventory of finished products is gradually increasing. If lead prices rise next week, they are expected to ship a small amount of goods to rotate funds. As the current sales quotes for secondary lead are below cost, losses are inevitable once sold; most enterprises prefer to accumulate inventory rather than ship goods. Additionally, due to the large number of enterprises reducing or halting production at this stage, the operating rate of secondary lead is below 40%. SMM expects that it may be difficult to maintain the growth trend of finished lead inventories next week.

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