Lead ingot social inventory across five major regions in China dropped

According to SMM survey, the lead ingot social inventory across five major regions in China totalled 71,300 mt as of December 15, down 12,400 mt from December 8 and up 6,000 mt from December 11. According to survey, due to maintenance factors, the supply gap of primary lead between the north and the south has been noticeable recently. The supply in the north China market was relatively ample; the supply of battery scrap was tight. That, combined with transportation issues due to heavy snowfall in north China, prompted secondary lead smelters in Anhui to reduce or halt production. Downstream buyers turned to consume the supply of nearby warehouses. And the social weekly inventory of lead ingots dropped accordingly. The delivery of the SHFE lead 2312 contract replenished social inventory of lead ingots after the sharp drop at the beginning of the week. Upstream and downstream companies will withdraw funds at the end of the year. Some large downstream companies have closed accounts. Meanwhile, primary lead and secondary lead smelters have reduced or ceased production. Given a drop in supply and demand, social inventories of lead ingots are expected to remain stable.