Restocking on Dips Drives Destocking, Limited Inventory Fluctuations Ahead [SMM Secondary Lead Inventory Weekly Review]

SMM, July 3:

As of July 2, finished product inventories of secondary lead stood at 19,100 mt, down 4,400 mt from June 25. Lead prices continued to fall this week, prompting battery enterprises to restock at lower prices. Coupled with the conclusion of mid-year account settlements, market transactions recovered somewhat. Next week, improvement in battery orders is expected to be limited, and secondary lead lacks a price advantage. Downstream buyers prioritized digesting existing inventory and fulfilling long-term contracts, with spot orders mostly shifting to primary lead. Production cuts at smelters tightened supply, making it difficult for secondary lead inventory to decline significantly. Meanwhile, there was no risk of inventory buildup, and overall inventory remained stable.