SHANGHAI, Jul 5 (SMM) – Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin rose 2,900 mt from last Friday July 2 to 133,900 mt as of Monday July 5, an SMM survey showed. The stocks were up 8,000 mt from last Monday June 28.
According to SMM survey, the production of primary lead refineries was stable, while the downstream consumption did not improve. In addition, lead prices kept fluctuating at high, and the downstream was cautious about receiving goods. At the same time, the current price difference between the contract and the spot further expanded, and cargo holders had a strong willingness to deliver the warehouse. After the conventional delivery warehouse was basically filled, inventories of some infrequently used delivery warehouses also increased significantly recently. The SHFE 2107 lead contract will be delivered next week. If the current price difference has not narrowed significantly, it is expected that lead ingots will be transferred from in-plant stocks to social warehouses before delivery.
