SMM data shows lead ingot social inventory in China’s five major regions rose

According to the SMM survey, as of September 12, the total social inventory of SMM lead ingots in five regions was 50,400 mt, an increase of 18,900 mt from September 5; an increase of 11,700 mt from September 9.
According to the survey, at the beginning of the week, lead prices fell sharply, coupled with the approaching delivery of the SHFE lead 2409 contract, many holders actively transferred lead ingots to the delivery warehouse in preparation for subsequent delivery, leading to an increase of nearly 20,000 mt in social inventory of lead ingots this week. During the decline in lead prices, losses at secondary lead smelters widened, and in some regions, secondary refined lead was quoted at a premium of 50-200 yuan/mt ex-factory over the SMM 1# lead average price, resulting in an inverted price relationship with primary lead. Downstream enterprises’ rigid demand returned to primary lead, but more inventory was digested from the smelters’ in-plant stock, and warehouse warrant transactions were average. Next week, after the Chinese Mid-Autumn holiday, on one hand, the SHFE lead 2409 contract will enter delivery, and the transfer of inventory to the warehouse for delivery by holders may keep the social inventory of lead ingots increasing; on the other hand, during the Mid-Autumn holiday, some downstream enterprises plan to take 1-2 days off, leading to a short-term lack of consumption, which may still leave room for inventory accumulation of lead ingots.