Lead social inventories rebounded on muted consumption, greater supply

SHANGHAI, May 15 (SMM) – Social inventories of lead ingots in China rose as expected this week, ending the downtrend since late February, as weak end-market consumption deterred downstream consumers from stockpiling after lead prices jumped and as supply of secondary lead increased on the ramp-up of new capacity.

SMM data showed that lead social stocks across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin increased 1,400 mt in the week ended May 15 to 9,300 mt, after a decline of over 300 mt in the previous week.

Consumption of lead-acid batteries, the major consumer of lead, was sluggish in a low season, and that led to the accumulation of inventories of raw materials and finished goods at battery producers after the Labour Day holidays.

Lead ingot social inventories in China are expected to extend their increase next week, in light of growing secondary lead supply and the arrival of imported materials. Production of primary lead will maintain stable next week.