Supply Tightens and Expectations of Shipping to Delivery Warehouse Build, Primary Lead In-factory Inventory Maintains a Downward Trend [SMM Primary Lead Inventory Weekly Review]

          It is learned that as of August 6, the in-factory inventory of major delivery brands of primary lead stood at 22,200 mt, down 2,200 mt WoW.

This week, maintenance and production cuts increased at some primary lead smelters in south China, leading to a phased tightening of lead ingot supply. At the beginning of the week, affected by falling lead prices, downstream enterprises’ dip-buying interest picked up, driving the destocking of smelter inventories; however, as lead prices stopped falling and rebounded in the latter half of the week, downstream purchases turned cautious again, market transactions returned to just-in-time demand, and the decline in in-factory inventory was relatively limited.

Next week will enter the week before delivery of the SHFE lead 2608 contract, and suppliers are expected to move more inventories to delivery warehouses for delivery; some in-factory lead ingots may continue to be transferred to delivery warehouses. Driven by the delivery factor, the in-factory inventory of primary lead smelters is expected to maintain its downtrend.