Maintenance coupled with transfer to delivery warehouse led to a decline in in-plant inventory of primary lead enterprises [SMM Weekly Review of Primary Lead Inventory]

        It is understood that as of July 10, the in-plant inventory of primary lead for the main delivery brands was 13,400 mt, a decrease of 6,500 mt WoW.

        This week, lead smelters in Central China experienced sudden equipment failures, resulting in a decrease in production MoM. Meanwhile, with only three working days left until the delivery date of the SHFE lead 2507 contract, suppliers increased their inventory transfers to delivery warehouses. Additionally, after the lead price surged and then pulled back, downstream enterprises bought the dip as needed, further depleting the in-plant inventory of smelters, leading to an overall decline in their inventory. Next week, SHFE lead will enter the delivery period, and it is expected that suppliers will continue to transfer their inventory before delivery. At the same time, with the completion of equipment maintenance at lead smelters and the advancement of new capacity commissioning, it is anticipated that there may be a risk of inventory buildup at smelters' in-plant warehouses again after delivery, most likely in late July.