SMM News on June 9: According to SMM, as of June 9, the total social inventory of lead ingots in five regions reached 53,400 mt, an increase of 3,500 mt from June 3, and over 500 mt from June 5.
Recently, lead prices have shown a trend of rebounding after hitting a low. Suppliers have been actively selling their stocks. In some regions, the discount for primary lead quotes has widened to a discount of 230-180 yuan/mt against the SHFE lead 2507 contract ex-factory. In the Jiangsu, Zhejiang, and Shanghai regions, the discount for warrant supplies has widened to a discount of 50-20 yuan/mt against the SHFE lead 2507 contract. In particular, the price of secondary lead in the Jiangsu and Zhejiang regions has inverted compared to primary lead, with secondary refined lead quoted at a premium of 50-100 yuan/mt against the SMM 1# lead average price ex-factory. This has prompted a small number of downstream enterprises to purchase on dips as needed, with a preference for primary lead delivery supplies, leading to a slight decrease in social warehouse inventory. In addition, environmental protection inspections were carried out in regions such as Inner Mongolia and Anhui last week, prompting some secondary lead enterprises to reduce or suspend production accordingly. The short-term reduction in supply will alleviate the pressure of inventory buildup for lead ingots.
