After Delivered the SHFE Contract, the Lead Ingot Social Inventories Changed from Increase to Decrease

SHANGHAI, May 20 (SMM) – As of May 20, SMM total social inventories of lead ingots across five regions increased to 99,300 mt, up 1,700 mt from last Friday (May 16) and down 9,300 mt from last Monday (May 16). According to the survey, due to the SHFE lead contract delivery at the beginning of the week, the deliverable good arrived at the warehouse, hence the lead ingot social inventories exceeded 10,000 mt.

At the same time,  primary lead and secondary lead smelters were unwilling to ship as the lead prices declined slightly and the secondary lead prices were close to battery cost. Most downstream companies purchased as needed at lows. As the secondary lead prices were higher than the refined lead prices,  the downstream turned to the trade market. As a result, the inventory of lead ingots decreased significantly from the beginning of the week. In addition, the off-season of the battery market will not change during next week, so the downstream enterprises have limited demand. In addition, the supply of lead ingots may be tightened due to factors such as environmental protection and safety rectification. As a result, the lead ingot social inventories may continue to decline.