[SMM Analysis: Downstream Enterprises Stockpiled as Needed Before National Day, Social Inventory Declined Again]

SMM, September 29: According to SMM, as of September 29, the total social inventory of lead ingots in five regions stood at 42,100 mt, down 12,700 mt from September 22 and 4,300 mt from September 25.

As the National Day & Mid-Autumn Festival holidays approached, downstream enterprises conducted their final pre-holiday stockpiling of lead ingots. Meanwhile, secondary lead enterprises in Anhui had not yet resumed operations after maintenance, leading downstream enterprises to consume lead ingot inventories from surrounding warehouses. Social warehouse inventories of lead ingots in regions such as Jiangsu, Zhejiang, and Shanghai further declined. With less than two days remaining before the holidays, pre-holiday procurement by downstream enterprises is expected to conclude soon. Lead smelters, after active pre-sales, also had relatively low spot lead inventories. Additionally, the sharp decline in lead prices today may spur some downstream enterprises to consider new stockpiling at lower prices, potentially further depleting social inventories. It is expected that the social inventory of lead ingots will continue to decline in the short term. Furthermore, many lead-acid battery enterprises plan to take holidays during the National Day period, leading to a lack of lead consumption. Coupled with the arrival of imported lead in October, the risk of inventory buildup for lead ingots after the holidays is significant.

Data Source Statement: Data not from public sources are processed by SMM based on public information, market communication, and SMM's internal database model, for reference only and not as decision-making advice.