According to SMM survey, social lead ingot inventory across five major regions in China totalled 62,800 mt as of March 21, down 5,600 mt from Thursday March 14 and 6,000 mt from Monday March 18.
Maintenance of primary lead smelters in the north increased last week, and the supply of lead ingots was reduced. Meanwhile, after the delivery of the SHFE 2403 contract two Fridays ago, cargoes were being offered for sale last week. That, combined with on-demand purchases by downstream enterprises, lowered social inventory of lead ingots. The lead-acid battery market consumption will gradually weaken at end-March, while the impact of maintenance at primary lead smelters will intensify. The downstream demand for primary lead may reduce social stocks again. However, the production of secondary lead smelters will be stable, and there can be a small increase in inventories at some smelters.
