Lead Ingot Social Inventory Surged to One-Month High Due to Futures Delivery and Downstream Holidays [SMM Survey]

According to SMM survey, as of September 19, the total social inventory of lead ingots in five regions reached 59,200 mt, an increase of 20,500 mt compared to September 9, and an increase of 8,700 mt compared to September 12.

According to the survey, on the first trading day after the Mid-Autumn Festival, the SHFE lead 2409 contract was delivered. Due to delivery by holders, the arrival of lead ingots in social warehouses increased during the holiday, pushing the overall inventory level to a one-month high. Meanwhile, during the Mid-Autumn Festival, many lead smelters continued production as usual, while downstream enterprises generally took 1-2 days off, leading to a temporary lack of lead consumption, which was one of the factors for the continuous rise in lead inventory. Additionally, both lead supply and demand have recently declined, and spot market trading has been sluggish. Attention should be paid to the extent of downstream pre-holiday stocking before the National Day holiday.