It is understood that as of May 23, the in-plant inventory of primary lead for major delivery brands stood at 20,900 mt, an increase of 2,600 mt WoW.
Last week, the front-month contract of SHFE lead was settled, and the transfer of primary lead to delivery warehouses by smelters was temporarily suspended. Meanwhile, the delivery cargoes re-entered the market, competing with the cargoes self-picked up from primary lead smelters. In terms of pricing, the quotations for cargoes self-picked up from primary lead smelters in major producing areas were at a discount of 50-0 yuan/mt ex-factory against the SMM 1# lead average price, or at a discount of 150-200 yuan/mt ex-factory against the SHFE lead 2506 contract. The quotations for warrant cargoes in Jiangsu, Zhejiang, and Shanghai were at a discount of 30-0 yuan/mt against the SHFE lead 2506 contract. Considering transportation distances and costs, some downstream enterprises preferred to receive cargoes from nearby warehouses, leading to a further accumulation of in-plant inventory at smelters. Additionally, as this week marks the final week for the May long-term contracts of lead ingots, some smelters have concentrated on deliveries, resulting in a decrease in inventory WoW. However, this did not alter the overall upward trend in inventory.
