According to an SMM survey, as of July 18, the total social inventory of SMM lead ingots in five major regions was 48,400 mt, a decrease of 17,500 mt from July 11 and a decrease of 18,300 mt from July 15.
According to the survey, social inventory of lead ingots first increased and then decreased during the week. On July 15, the delivery day for the SHFE 2407 lead contract, sellers made delivery to warehouses, causing social inventory to rise. In the second half of the week, the lead ingots delivered re-entered the spot trading market, with downstream companies restocking as needed. The inventories of primary lead smelters were not high. Most secondary lead smelters reduced or suspended production, and battery scrap prices continued to hit new highs. Therefore, secondary refined lead prices were quoted at premiums over SMM #1 lead average price, causing downstream companies' rigid demand to shift to social inventory. Additionally, this week, as some large secondary lead enterprises in Anhui will gradually resume production and the imported lead is expected to arrive, the domestic supply tightness may relatively ease, and the decline in social inventory of lead ingots may slow down.
