As the delivery period approaches, the growth trend of social inventory of lead ingots remains unchanged [SMM social inventory of lead ingots]

        SMM News on July 10: According to SMM, as of July 10, the total social inventory of lead ingots in five regions tracked by SMM reached 61,100 mt, an increase of 4,200 mt from July 3 and 3,200 mt from July 7.

        This week, maintenance and new capacity commissioning coexisted in primary lead smelters, leading to a slight increase in supply. Meanwhile, lead prices fluctuated at highs, and suppliers mostly offered cargoes at discounts. Quotations for cargoes in warehouses in Jiangsu, Zhejiang, and Shanghai were at discounts of 80-20 yuan/mt against the SHFE lead 2508 contract. However, downstream enterprises had scattered demand, and their rigid demand was more inclined to purchase cargoes self-picked up from production sites. Some downstream enterprises had a strong wait-and-see sentiment due to high prices, leading to a cumulative increase in social warehouse inventory of lead ingots. In addition, the SHFE lead 2507 contract is approaching delivery next week. Considering that the current spread between futures and spot prices of lead exceeds 200 yuan/mt, suppliers intend to transfer inventory to delivery warehouses, which is also one of the main factors driving the increase in social inventory of lead ingots. Next week, during the SHFE lead delivery week, suppliers are expected to transfer more inventory to delivery warehouses, and the social inventory of lead ingots will continue to increase before delivery.