Primary lead social stocks extend decline on smaller price spreads with secondary lead

SHANGHAI, Nov 23 (SMM) – Social inventories of primary lead across Shanghai and Guangdong fell for a second straight week as smaller price spreads with secondary materials pushed buyers to purchase primary materials.

SMM data showed that social stocks of primary lead across the two regions decreased by 600 mt from a week ago to stand at 16,900 mt as of Friday November 23.

Lead prices traded rangebound this week. Price spreads between secondary refined lead and primary materials narrowed as high battery scrap prices, supported by tight supplies, thinned profit margins across secondary lead smelters and forced them to raise offers. Most secondary lead smelters offered cargoes in discounts of 150 yuan/mt, ex-works, against SMM 1# average, earlier in the week.

Limited cargoes that were used to fulfill the November contract entered the spot market this week.