Social inventories of lead ingots registered a new six-year high

SHANGHAI, May 21 (SMM)—Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin expanded 6,600 mt from last Friday May 14 to 90,600 mt as of May 21. This was up 4,700 mt from Monday May 17 and registered a new high since June 2015.

Lead supply continued to rise slightly this week as primary and secondary lead smelters further restored their production. Lead-acid battery makers mainly purchased through long-term contracts as the market was still in a low season and lead prices strengthened this week. In addition, the larger price spread between spot and futures prices encouraged smelters to deliver cargoes to social warehouses.

Lead social inventories are likely to extend gains next week amid rising supply and poor consumption.