[Analysis: Supply Tightens and Transportation Restrictions Lead to Continuous Decline in Social Inventory of Lead Ingots]

SMM reported on August 25: According to SMM, as of August 25, the total social inventory of lead ingots across five regions reached 68,300 mt, a decrease of 2,700 mt from August 18; and a reduction of 1,600 mt compared to August 21.

Recently, due to losses and undersupply of scrap, an increasing number of secondary lead smelters have cut production or undergone maintenance, including those in east China and north China, leading to further tightening of lead ingot supply. Additionally, with the upcoming Shanghai Cooperation Organization Summit in Tianjin and the military parade in Beijing, temporary vehicle restrictions are being implemented in parts of central and north China, with restriction periods varying from August 25 to September 3. During this time, transportation of materials such as scrap and lead ingots, especially for vehicles meeting National V (i.e., conforming to the national fifth stage motor vehicle pollutant emission standards) and below, is restricted, extending the delivery cycle. This has led some downstream enterprises to turn to nearby warehouse stocks to meet their immediate needs. Furthermore, in September, there will be more maintenance plans for primary lead smelters, coupled with transportation restrictions, which may continue to divert the essential demand of downstream enterprises to social inventory sources.

Data Source Statement: Apart from publicly available information, other data is processed by SMM based on public information, market exchanges, and SMM's internal database model, and is provided for reference only, not as a basis for decision-making.