Social Inventory of Lead Ingot Declines Further amid Maintenance and Pandemic

SHANGHAI, Nov 25 (SMM) - According to SMM survey, as of November 25, the lead ingot inventory across the five major regions in China totalled 50,500 mt, down 2,600 mt from November 18 and 2,000 mt from November 21.

According to research, as the delivery of SHFE 2211 lead contact was finished, the deliverable goods were available in the market. Meanwhile, the signing of November orders is coming to an end, hence some downstream enterprises purchased on dips for stockpiling. At the same time, secondary lead smelters in Henan and Jiangsu either stopped the production or reduced the production due to maintenance, hence the supply reduced regionally. In addition, the pandemic intensified in many places, and the transportation were blocked, which had a great impact on the lead industry chain. Downstream enterprises purchased nearby as needed, hence the social inventory of lead ingot declined. As the impact of the pandemic may extend nex week, the supply of lead scrap will tighten. The social inventory of lead ingot may decline further as the production of smelters is limited.