[SMM Analysis: Increased Supply of Primary and Secondary Lead, Social Inventory Continues to Rise]

SMM News on July 7: According to SMM, as of July 7, the total social inventory of lead ingots in five regions tracked by SMM reached 57,900 mt, an increase of 1,500 mt from June 30 and 1,000 mt from July 3.
Recently, lead prices have held up well and risen above 17,000 yuan/mt. The losses of secondary lead producers have narrowed, and the production enthusiasm of lead smelters has increased. Coupled with the gradual commissioning of new smelting capacity, there has been a phased increase in the supply of lead ingots. However, the current improvement in lead consumption is limited and cannot fully absorb the increased supply, so the social inventory of lead ingots continues to rise. Additionally, the SHFE lead 2507 contract is set to enter delivery next week. Considering that the current spread between futures and spot prices of lead exceeds 200 yuan/mt, some suppliers have plans to transfer to delivery warehouse. It is expected that the social inventory of lead ingots will show an upward trend before delivery.