Secondary lead production cuts lead to consumption shifting to primary lead, with in-plant inventory continuing to decline [SMM Weekly Review of Primary Lead Inventory]

        It is understood that as of June 13, the in-plant inventory of primary lead delivery brands stood at 11,600 mt, a decrease of 5,100 mt WoW.

        Recently, lead prices have fluctuated upward, and lead smelters have been actively selling their products. Especially amid widespread production cuts and suspensions by secondary lead enterprises, lead consumption has shifted more towards the primary lead market, boosting the market's trading activity. As a result, smelters' inventories have gradually declined. Trading prices have also shifted from discounts to premiums compared to last week. For instance, last week, primary lead quotations in South China were at a discount of 60-0 yuan/mt against the SMM 1# lead average price ex-factory, while this week, they have risen to a premium of 0-60 yuan/mt against the SMM 1# lead average price ex-factory. In addition, with the approaching delivery of the SHFE lead 2506 contract, some suppliers have transferred their inventory to delivery warehouses, which is also one of the factors contributing to the decline in smelters' in-plant inventories. Next week, primary lead smelters in North China and south-west China will enter maintenance periods, and supply is expected to tighten, which may further reduce in-plant inventories.