According to the SMM survey, as of August 12, the total social inventory of lead in five regions reached 42,800 mt, an increase of 5,300 mt compared to August 5, and an increase of approximately 700 mt compared to August 8.
According to the survey, the SHFE lead 2408 contract is about to enter delivery this week, with only three working days left until the delivery date. Holders are transferring stocks to warehouses, resulting in an increase in social inventories of lead. Additionally, some imported lead has recently arrived at ports, increasing the supply of lead in the market. Furthermore, the supply of secondary lead was stable, and smelters actively made shipments. The ex-factory price of secondary refined lead was at a discount of 300-150 yuan/mt to the SMM #1 lead average price, and the demand of downstream enterprises was also inclined towards secondary lead sources. It is expected that as the delivery date approaches, the transfer of lead to warehouses for delivery may further increase social inventories.
