Lead social inventories barely changed amid ongoing logistics suspension

SHANGHAI, Feb 7 (SMM) – Social inventories of lead ingots in China limitedly changed this week as the delayed recovery of downstream lead-acid battery producers kept spot trades quiet. Continued logistics suspension after coronavirus outbreak also deterred the shipments from lead smelters to social warehouses. 

SMM data showed that lead social stocks across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin stood at 30,200 mt as of Friday February 7, flat from Monday February 3 but more than 1,000 mt higher from January 17. 

SMM expects the social inventories of lead ingots to rebound next week as logistics services will partially recover and some lead-acid battery producers will resume operations after February 10. But there remain uncertainties around the downstream production given a half-a-month quarantine period for newly-returned workers. The amount of increase in lead stocks next week will be determined by the scale of recovery for logistics.