Total social inventory of lead ingots in the five major markets in China

According to an SMM survey, as of May 30, the total social inventory of lead ingots in the five major markets in China was 65,700 mt, up 7,300 mt from May 23 and up 3,600 mt from May 27. Lead prices continued to consolidate at highs. Downstream companies maintained on-demand purchases and preferred relatively cheaper secondary lead sources. Primary lead smelters underwent both maintenance and resumption of production. Many smelters held firm on prices, with spot premiums of 0-150 yuan/mt against the average SMM #1 lead price, ex-factory. Available supply in north China increased. In the secondary lead sector, the battery scrap supply issue was not fully resolved. The discounts of secondary refined lead against the average SMM #1 lead price varied by region, narrowing from 250-200 yuan/mt at the beginning of the week to around 100 yuan/mt. Some transactions occurred with discounts of 0 yuan/mt. Only some remote areas continued to offer discounts of 200-250 yuan/mt, ex-factory. Most of the increase in lead ingot social inventories last week was driven by Jiangsu, followed by Zhejiang and Tianjin. A small amount of imported lead is likely to arrive at the warehouses.