[SMM Analysis: Regional Supply of Lead Ingots Tightens, Social Inventory Drops to Near One-Month Low]

SMM Dec 1: According to SMM, as of December 1, the total social inventory of lead ingots across five regions stood at 30,700 mt, down 6,300 mt from November 24 and 4,300 mt from November 27, reaching a near one-month low.

This week, primary lead smelters in regions such as Yunnan, Anhui, and Jiangxi were under maintenance, leading to tighter regional supply of lead ingots. Meanwhile, lead prices were in the doldrums, prompting smelters to hold back sales at lower prices. Quotations from major producing areas against the SMM #1 lead average price were at premiums of 0–100 yuan/mt ex-works. Secondary lead producers also held prices firm, with secondary refined lead quotations against the SMM #1 lead price at discounts of 50–0 yuan/mt ex-works, while more enterprises reported parity. Additionally, lead-acid battery production improved in December, with intentions to build inventory on price dips, leading to reductions in warehouse inventories around consumption areas and a further decline in social inventory of lead ingots. In December, maintenance and restarts coexisted among primary and secondary lead producers, but after offsetting production increases and decreases, a certain reduction in output is expected. With downstream enterprises purchasing as needed, short-term social inventory of lead ingots is expected to remain low.

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