[SMM Analysis: Limited Transportation and Weak Consumption Keep Lead Ingot Social Inventory Changes Relatively Small]

SMM, September 1: According to SMM, as of September 1, the total social inventory of lead ingots across five regions stood at 67,100 mt, down 1,200 mt from August 25 and approximately 100 mt from August 28.

Recently, the traditional peak season for the lead-acid battery market has performed moderately, with most battery manufacturers maintaining a produce-based-on-sales model and purchasing raw material lead as needed. Additionally, lead prices have been consolidating at high levels, prompting downstream enterprises to exercise caution in purchasing "high-priced lead," resulting in sluggish spot market transactions. From late August to early September, events such as the Tianjin SCO Summit and the Beijing military parade have imposed transportation restrictions on vehicles in parts of North and Central China, prolonging the delivery cycle of lead ingots from smelters and reducing shipments to social warehouses. Consequently, social warehouse inventory changes remained relatively small. However, it is worth noting that some smelters' in-plant inventories have accumulated. If consumption fails to improve significantly after transportation restrictions are lifted, there is a risk of further accumulation in lead ingot social inventories.