Export may Affect Follow-up Lead Ingot Social Inventory

SHANGHAI, Mar 31 (SMM) - According to SMM research, according to SMM research, as of March 31, the total social inventory of SMM lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin reached 39,600 mt, a decrease of 1,200 mt from last Friday and 2,000 mt from this Monday.
According to the survey, with the end of overhaul of large secondary lead smelters, the market supply increased and both primary and secondary lead smelters were less active in delivery as lead prices fell after hitting high. The discounts of small orders narrowed significantly with that of primary lead dipping to 50-0 yuan/mt against SMM 1# lead price, and that of secondary refined lead standing at 75-25 yuan/mt. As the lead prices weakened, downstream enterprises purchased actively on dip, resulting in the decline in social inventory. In addition, both supply and demand of lead ingots were weak amid seasonal off. In light of rising overseas lead prices, the export window for lead ingots is open, which may slightly drag down the lead ingot social inventory.