According to an SMM survey, as of July 25, the total social inventory of lead ingots in the five major regions was 39,000 mt, a decrease of 9,400 mt from July 18 and a decrease of 6,500 mt from July 22.
According to the survey, some primary lead delivery brand producers were still under maintenance recently and some had pre-sold the majority of their August production, resulting in relatively low available inventory. Meanwhile, lead prices fluctuated downward, with the SHFE 2409 lead contract even falling below 19,000 yuan/mt. Downstream companies were keen on purchasing at lower prices, with some favouring delivery sources. Therefore, the social inventory of lead ingots further declined. Additionally, the resumption of secondary lead producers in regions like Anhui was gradually progressing. As the imported lead arrived, the discount of secondary lead expanded. For instance, in the South China market, the ex-factory discount for secondary refined lead against the SMM #1 lead average price was 50-150 yuan/mt. The tight supply of primary lead eased to some extent. The spot market saw relatively ample circulating supply of non-delivery primary lead and secondary lead.
