Downstream Production Cuts and Shutdowns Hit Consumption, Primary Lead Enterprise Inventory Accumulates [SMM Primary Lead Inventory Weekly Review]

        According to reports, as of October 30, the in-factory inventory of primary lead delivery brands stood at 8,600 mt, up 7,100 mt WoW.

This week, lead smelters in east China underwent maintenance, while those in north China gradually resumed production; however, overall production still experienced a slight decline after offsetting the increases and decreases. Due to the sharp rise in lead prices in late October, medium and large lead-acid battery enterprises collectively reduced or halted production around month-end, leading to a noticeable weakening in lead consumption. Consequently, in-factory inventories at lead smelters gradually accumulated, and the spot market shifted from trading at a premium last week to trading at a discount (against SMM #1 lead). Additionally, given the recent widening of the spread between lead futures and spot prices, some suppliers are considering shipping to delivery warehouses. Therefore, we need to monitor the possibility of lead ingot inventory transfers resulting from such deliveries in the near future.