Total social inventory of lead ingots in five major regions in China increased last week

According to an SMM survey, as of June 6, the SMM total social inventory of lead ingots in five major regions was 71,100 mt, up 5,400 mt from Thursday May 30 and up 5,600 mt from Monday June 3. According to the survey, last week, primary and secondary lead smelters resumed production as expected, increasing lead ingot supply. Meanwhile, the prices of lead concentrate and battery scrap, essential for ingot production, are more likely to rise. Deliverable brands enterprises held firm on prices. Some sellers delivered cargoes to warehouses, transferring lead ingot inventory to delivery warehouses. Deliverable brands warrants were quoted at a premium of 0-30 yuan/mt over the SHFE 2406 lead contract, while secondary refined lead was quoted at a discount of 200-100 yuan/mt against SMM #1 lead, ex-factory, with some regions offering discounts of 300 yuan/mt. Downstream enterprises still favoured secondary lead. Due to the Dragon Boat Festival holiday, some downstream enterprises closed for 1-3 days, leading to a temporary reduction in consumption. Meanwhile, due to the approaching SHFE 2406 lead contract delivery date, the transfer of inventory to delivery warehouses is expected to increase, leading to a rise in social inventory of lead ingots.