Weak Consumption Fails to Offset Supply Growth, Primary Lead Enterprise Inventory Continues to Rise [SMM Primary Lead Inventory Weekly Review]

          According to available information, as of April 16, the in-factory inventory of primary lead from major delivery brands stood at 21,500 mt, an increase of approximately 4,800 mt WoW.

Recently, primary lead smelters in south-west China resumed operations after maintenance, leading to a WoW increase in supply. Meanwhile, lead prices fell first and then rose during the week. Downstream enterprises showed moderate purchasing enthusiasm at the beginning of the week, but as lead prices rose, spot market trading slowed down notably, and in-factory inventory at primary lead smelters also increased accordingly. Even though lead ingot transfers triggered by SHFE lead deliveries offset some inventory buildup pressure, they ultimately failed to reverse the upward trend in smelter in-factory inventory. In addition, the lead-acid battery market is currently in the off-season, with limited procurement from downstream enterprises. In late April, many secondary lead enterprises are scheduled for maintenance, and combined with the narrowing of the import window, the inventory buildup at primary lead enterprises is expected to slow down slightly going forward.