SHANGHAI, Aug 2 (SMM) – Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin increased 5,000 mt from July 30 and rose 11,600 mt from July 26 to 177,700 mt as of August 2.
Lead ingot supply continued to exceed demand. The output of secondary lead kept rising as the companies finished maintenance or release new capacities. At the same time, holders actively delivered goods to warehouses amid wide price difference between spots and futures. The inventories at the expanded warehouses in Shanghai, Jiangsu, and Tianjin increased significantly.
Secondary lead output is expected to grow steadily. However, the plants in Henan have received power curtailment notice, and the pandemic turned more severe in Jiangsu and Henan, where the passing cargo vehicles must be disinfected, and the transportations may be delayed for 7-15 days, which will affect the later deliveries and transactions. The increase in the social inventories of lead ingot is expected to slow down.
