SMM total social inventory of lead ingots in five major regions in China decreased

According to the SMM survey, as of June 27, the SMM total social inventory of lead ingots in five major regions in China was 61,800 mt, down 3,800 mt from Thursday (June 20), and up 1,400 mt from Monday (June 24).

According to the survey, the recent strong lead price trend has widened the spread between spot and futures prices to over 200 yuan/mt. In the spot market, the price spread between north and south China has widened. In north China, delivery brand quotes were at a premium of 100-200 yuan/mt ex-factory, over the SMM 1# lead average price, while in south China, discounts emerged, with discounts of 50-0 yuan/mt over the SMM 1# lead average price. Some sellers' willingness to deliver to warehouses increased. The rise in lead prices has put cost pressure on downstream enterprises, with most enterprises restocking as needed. Additionally, some downstream enterprises conducted mid-year inventory checks, leading to a decline in lead ingot procurement activity compared to a week earlier. Furthermore, due to the combined factors of environmental protection and losses, many secondary lead smelting enterprises were in a state of production reduction or suspension last week, limiting lead ingot supply and causing regional supply tightness.