SMM News on June 19: According to SMM, as of June 19, the total social inventory of lead ingots across five locations reached 56,000 mt, an increase of 1,300 mt from June 12, and a decrease of over 300 mt from June 16.
This week, the SHFE lead 2506 contract entered the delivery phase. The transfer of inventory by suppliers due to delivery led to an increase in the social inventory of lead ingots. However, in the second half of the week, after the delivery, the goods flowed back into the market, and downstream enterprises made purchases based on demand, causing the social inventory to reverse and decline. Recently, most secondary lead enterprises have been in a state of production reduction or suspension. Coupled with the increase in maintenance activities at primary lead enterprises, the supply of lead ingots has relatively tightened. Lead prices have also shown a fluctuating upward trend. The rise in lead prices has stimulated some downstream enterprises to make purchases based on demand. Meanwhile, the off-season trend in the lead-acid battery market remains unchanged. Downstream enterprises mostly make just-in-time procurement. Especially when lead prices approach the 17,000 yuan per mt threshold, downstream enterprises are more cautious in purchasing high-priced goods. Next week marks the end of June. The impact of maintenance activities at primary lead smelters will intensify. Additionally, as it is mid-year, some downstream enterprises are also facing mid-year account closing and settlement, which may temporarily suspend their purchases of lead ingots. Under the situation of weak supply and demand, it is expected that the inventory of lead ingots will maintain a slight downward trend.
