According to SMM survey, the inventory of finished products at secondary lead smelters stood at around 14,600 mt last week, up 930 mt from the prior week. Raw material inventories decreased 16,600 mt to around 189,000 mt. The shortage of raw materials combined with the gradual weakening of downstream consumption has led to a slight reduction in production by many smelters. After the National Day holidays, most smelters said that finished product inventories were not high and most of them had been sold.
Recently, downstream lead-acid battery companies have taken a wait-and-see attitude and just purchased lead ingots under small orders as required, seeking cheaper cargoes or cargoes under long-term contracts. Smelters said that downstream inquiries were acceptable but trades were subdued, growing finished product inventories. The inventory of battery scrap dropped significantly last week, and the current average inventory of each company stands at around one week of production.
