Social lead ingot inventory across five major regions in China

According to SMM survey, social lead ingot inventory across five major regions in China totalled 53,600 mt as of April 3, down 2,600 mt from Thursday March 28 and up 800 mt from Monday April 1.

According to the survey, lead prices fell from a high level, and the price spread between futures contracts and spot cargoes narrowed. Some sellers turned to actively sell cargoes. The premiums over the SHFE 2405 lead contract were lowered to around zero. Some downstream companies planned to close for holidays, dampening the purchase of lead ingots before Qingming Festival. Meanwhile, large companies were mostly producing normally. After the lead price fell, transactions in some regions improved and social inventories continued to decline. Secondary lead smelters sold with large discounts. Secondary refined lead in major markets was mostly offered with discounts of 150-200 yuan/mt (ex-works) over the average price of SMM #1 lead. Some smelters in remote areas offered discounts of around 300 yuan/mt (ex-works). After the Qingming Festival, social inventory accumulation is likely to occur due to the deliveries for the SHFE front-month contract.