Primary lead inventory rebounds on production recovery

SHANGHAI, Jul 6 (SMM) – Primary lead inventory in Shanghai and Guangdong halted its four-week decline and increased over the week ended Friday July 6, helped by the recovery of secondary lead production, SMM research found.

As of Friday, the inventory grew over 3,000 mt from a week ago to 8,700 mt. The increase in Shanghai accounted for the majority of the growth.

Secondary lead smelters gradually recovered their production after environmental inspectors from the central government left the region. Some consumers bought secondary lead instead of primary materials.

Meanwhile, limitations on production at some primary lead smelters in Jiyuan city in Henan province were reduced from 50% to 30%, which helped drive up the overall production over the past week.

The inflow of imported materials was another contributing factor. Downstream consumers showed limited interest in imports due to price disadvantages.