SMM News on May 22: According to SMM, as of May 22, the total social inventory of lead ingots in five regions tracked by SMM reached 50,300 mt, a decrease of 5,700 mt from May 15 and a decrease of 8,800 mt from May 19.
This week, lead prices fluctuated downward. Primary lead smelters generally sold their products in line with market conditions, with quotations against the SMM 1# lead average price ranging from a discount of 50 yuan/mt to a premium of 100 yuan/mt ex-factory. However, secondary lead smelters, facing expanding losses, became more reluctant to sell at low prices, leading to a rise in sentiment to hold back on sales. Some enterprises suspended shipments, and the discount for secondary refined lead quotations narrowed to a range of 50-0 yuan/mt discount against the SMM 1# lead average price ex-factory, with even premium quotations appearing, inverting the price relationship with primary lead. Additionally, secondary lead smelters in major production regions once again experienced production cuts and suspensions. Downstream enterprises, in their just-in-time procurement, favored primary lead supplies. Furthermore, after the delivery of SHFE lead contracts last week, the goods re-entered the market, with some downstream enterprises prioritizing nearby procurement, leading to significant reductions in social inventory in the Jiangsu, Zhejiang, and Tianjin regions. Meanwhile, the advancement of new capacity and production resumptions in the secondary lead sector has raised expectations for increased supply. However, the off-season trend in the lead-acid battery market remains unchanged. It is expected that after the realization of the increased supply, the decline in social inventory of lead ingots may slow down.
