Downstream procurement remained sluggish before the holiday, with in-plant inventory at primary lead smelters increasing again [SMM Weekly Review of Primary Lead Inventory]

        It is understood that as of May 30, the in-plant inventory of primary lead for major delivery brands stood at 28,500 mt, an increase of 7,700 mt WoW.

        This week, the production of primary lead smelters has steadily increased, with ample supply in the market. Suppliers have expanded their discounts to sell goods. Mid-week, the quotations for primary lead in major producing areas were at a discount of 60-20 yuan/mt against the SMM 1# lead price ex-factory, or at a discount of 160-200 yuan/mt against the SHFE lead 2507 contract ex-factory. Meanwhile, the lead-acid battery market has seen sluggish consumption, with downstream enterprises generally experiencing production cuts. Additionally, as the Dragon Boat Festival holiday approaches, many downstream enterprises plan to take leave, with almost no inventory replenishment plans before the holiday. As a result, the in-plant inventory of primary lead smelters continues to rise. Furthermore, the spread between futures and spot prices of lead has widened recently, prompting some suppliers to transfer goods to delivery warehouses. However, this has not changed the trend of increasing in-plant inventory.