According to SMM survey, social lead ingot inventory across five major regions in China totalled 59,400 mt as of August 18, up 6,100 mt from August 11 and 4,200 mt from August 14.
Due to delivery, primary lead smelters transferred lead ingots to delivery warehouses, causing a sharp increase in the social inventory of lead ingots. The delivered cargoes will not re-enter the market immediately following the delivery. Meanwhile, high lead prices sidelined downstream buyers, purchasing mainly under long-term contracts signed with smelters. In this scenario, the social inventory still increased despite output cuts at primary lead smelters. This week, primary lead smelters are expected to have new maintenance plans. Delivered cargoes will re-enter the market. The greenfield secondary lead projects will yield output. Social inventories are expected to grow slower or decline.
