[SMM Analysis: Weak Consumption Performance Shifts Lead Ingot Social Inventory to Buildup Trend]

SMM Sep. 8: As of September 8, SMM's five-region social inventory of lead ingots totaled 67,700 mt, up approximately 600 mt from September 1 and 1,500 mt from September 4.

This week, logistics restrictions in North and Central China were fully lifted. On one hand, spot market cargo availability increased, with spot discounts widening—particularly for cargoes self-picked up from production sites in South China, where discounts against the SHFE lead 2510 contract once reached 200-180 yuan/mt ex-works. On the other hand, lead consumption remained weak, with downstream enterprises making just-in-time procurement sporadically, diverting some primary lead from producers' warehouses to social warehouses. Consequently, lead ingot social inventory shifted to a buildup trend. Additionally, this week marked the penultimate week before the SHFE lead 2510 contract delivery, and suppliers' subsequent transfer-to-warehouse activities may sustain the inventory increase.

Data Source Statement: Except for publicly available information, other data are derived from public sources, market exchanges, and SMM's internal database models, processed by SMM for reference only and not as decision-making advice.