Social inventories of lead ingots hit a new high since May 2015

SHANGHAI, May 28 (SMM)—Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin expanded 12,500 mt from last Friday May 21 to 103,100 mt as of May 28. This was up 9,200 mt from Monday May 24 and registered a new high since May 2015.

Production of primary and secondary lead improved this week, while consumption of lead-acid battery continued to weaken and some battery makers further reduced output. Trades were quiet in the spot lead market, and the price spread between spot cargoes and futures contacts maintained at around 200 yuan/mt. Stocks rose sharply in Jiangsu, Zhejiang, Shanghai and Tianjin as traders delivered cargoes to warehouses.

Lead social inventories are expected to extend gains next week.