SMM Review on Spot Lead Supply and Demand Balance in Apr

SHANGHAI, May 22 (SMM) - Supply: The overall lead ingot supply plunged in April due to the intensive maintenance carried out by primary lead and secondary lead smelters. Entering May, many secondary lead smelters have resumed their production, including those in Anhui, Shandong, Guizhou, Yunnan, Sichuan and other regions, and the overhaul undertaken by primary lead smelters will cast no influence on the overall lead ingot supply in May.

Consumption: In April, the lead-acid battery companies either reduced or suspended production because of the off-season, leading to sluggish lead consumption. At the end of the month, the enterprises restocked lead ingots on demand before the upcoming Labour Day holiday. In May, the lead-acid battery sector is still in the off-season, and the downstream demand has decreased further. SMM believes that the lead ingot consumption will change little throughout May. However, the large lead-acid battery enterprises are likely to ramp up production in June to meet mid-year sales target.