Maintenance Wave Continues to Advance, Primary Lead Smelters' In-Factory Inventory Remains Low [SMM Primary Lead Inventory Weekly Review]

          It is understood that as of August 27, in-factory inventory of primary lead under major delivery brands stood at 17,300 mt, up about 200 mt WoW.

This week, primary lead smelters in North China, Central China, and Southwest China, among other regions, successively entered a period of concentrated maintenance, further tightening lead ingot supply. However, as lead prices consolidated on a strong note, spot lead prices regained the 16,000 yuan/mt mark after two months; wait-and-see sentiment among downstream enterprises increased, and some enterprises only maintained long-term contract purchases. Meanwhile, the discount of secondary refined lead against the SMM #1 lead average price widened, and imported lead cargoes entered circulation, diverting some downstream rigid demand and affecting spot transactions in the primary lead market to some extent. Consequently, in-factory inventory of primary lead smelters failed to continue to decline this week, and the situation in which a few enterprises had previously limited shipments also eased. Looking ahead, as maintenance continues at smelters in North China, Central China, and Southwest China, among other regions, the primary lead supply side will remain affected to some extent, and in-factory inventory of primary lead smelters is expected to remain at relatively low levels.