It is understood that as of June 6, the in-plant inventory of primary lead delivery brands stood at 16,700 mt, a decrease of 11,700 mt WoW.
After the Dragon Boat Festival holiday, lead prices showed a trend of dipping and then rebounding. Primary lead smelters actively destocked, and suppliers expanded discounts to sell their goods, even selling at discounts during periods of falling lead prices. At the beginning of the 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 230-160 yuan/mt against the SHFE lead 2507 contract ex-factory. Meanwhile, due to cost factors, secondary refined lead producers quoted their products at a premium of 0-100 yuan/mt against the SMM 1# lead price ex-factory. Downstream enterprises preferred primary lead supplies for their immediate needs and gradually bought the dip as required, prompting smelters' in-plant inventory to decline. Currently, some regions in Anhui are undergoing inspection by environmental protection inspection teams, affecting a reduction in some supply. Coupled with the expectation of suppliers transferring inventory to delivery warehouses, the in-plant inventory of primary lead smelters may continue to decline.
