[SMM Analysis: Primary Lead Maintenance Increases, Social Inventory of Lead Ingots Continues to Decline Slightly]

SMM News on June 23: According to SMM, as of June 23, the total social inventory of lead ingots in five regions tracked by SMM reached 55,700 mt, a decrease of approximately 700 mt from June 16 and a decrease of over 300 mt from June 19.

Recently, lead prices have held up well, with downstream enterprises showing moderate enthusiasm for procurement. As the month-end approaches, some downstream enterprises have begun to wait for new long-term contracts in the next month, limiting their purchases of spot orders. Meanwhile, secondary lead enterprises are generally in a state of production reduction or suspension. Additionally, primary lead smelters in regions such as North China, Southwest China, and South China have entered maintenance periods, leading to a tightening of lead ingot supply. Social warehouses continue to experience a slight decline in inventory. In late June, maintenance activities at lead smelters are intensive, with many of them being delivery brands. As a result, the supply of lead ingots to social warehouses is limited. Moreover, there is a possibility that a few large downstream enterprises may reduce their spot order purchases at year-end due to account closing. The short-term pattern of weak supply in both the lead market and demand remains unchanged.