Against the backdrop of increasing supply and demand, social inventory of lead ingots increased slightly [SMM Social Inventory of Lead Ingots]

        SMM News on July 3: According to SMM, as of July 3, the total social inventory of lead ingots in five regions tracked by SMM reached 56,900 mt, an increase of approximately 900 mt from June 26 and an increase of approximately 600 mt from June 30.

        This week, lead prices have held up well, with the overall price center moving upwards. Suppliers have been actively selling their cargoes, leading to an expansion in spot discounts for lead. The price spread between futures and spot prices for lead from major producing areas ranges from 180 to 250 yuan/mt. During this period, suppliers intended to transfer their cargoes to delivery warehouses. However, given that the delivery date was still some time away, they sold more to downstream enterprises. Downstream enterprises purchased based on demand and were willing to accept some cargoes with large discounts. As a result, the inventory in social warehouses only increased slightly. In July, with the conclusion of maintenance at lead smelters, the supply of lead ingots is expected to rise. Meanwhile, lead consumption has entered the transition period between the off-season and peak season, with downstream demand relatively improving. It is anticipated that under the background of both supply and demand increasing, there will be no significant inventory buildup expected for lead ingots. Additionally, it is worth noting that next week is the week preceding the delivery of the SHFE lead 2506 contract. Given the large price spread between futures and spot prices, we still need to pay attention to the possibility of social inventory buildup caused by the transfer of some delivery brand cargoes to warehouses.