Inventory buildup of lead ingots occurred as scheduled before delivery; subsequent attention should be paid to the production trends of secondary lead enterprises [SMM Social Inventory of Lead Ingots]

        SMM News on June 12: According to SMM, as of June 12, the total social inventory of lead ingots across five regions tracked by SMM reached 54,700 mt, an increase of approximately 800 mt from June 5 and an increase of 1,300 mt from June 9.

        This week, the production of primary lead smelters remained stable with a slight increase, while secondary lead enterprises were generally in a state of production reduction or suspension due to factors such as environmental protection, losses, and insufficient scrap supply. The regional tightening of lead ingot supply led to a shift in lead consumption towards the primary lead market. As the lead consumer market was still in the off-season, the trading situation in the spot lead market improved regionally, with the southern market performing better than the previous week. Meanwhile, lead prices fluctuated and strengthened, prompting primary lead smelters to actively sell their products. The spread between futures and spot prices for lead in major producing regions ranged from 180 to 220 yuan/mt. Additionally, with the delivery of the SHFE lead 2506 contract approaching, some suppliers transferred their inventory to delivery warehouses. As expected, the social inventory of lead ingots increased, but the growth was relatively small. Next week, the front-month contract of SHFE lead will enter the delivery phase. The anticipation of suppliers transferring inventory to delivery warehouses before delivery may lead to further increases in the social inventory of lead ingots. Furthermore, we need to continue monitoring the impact of environmental protection inspections, scrap battery supply, and other factors on the production of secondary lead enterprises.