Transfer to Delivery Warehouse and Production Restrictions Concentratedly Occur, Social Inventory of Lead Ingots First Increases Then Decreases [SMM Survey]

Dec 19, 2024, at 2:06 pm

[SMM Survey: Transfer to Delivery Warehouse and Production Restrictions Concentrate, Lead Ingot Social Inventory Rises First Then Falls] According to the survey, this week coincided with the delivery of the 2412 contract, during which suppliers transferred inventory to delivery warehouses, causing a rebound in lead ingot social inventory. At the beginning of the week, air pollution reappeared in multiple regions, such as Hebei, Henan, and Anhui...

SMM, December 19: According to an SMM survey, as of December 19, the total social inventory of lead ingots across five regions tracked by SMM reached 58,500 mt, an increase of approximately 600 mt compared to December 12, but a decrease of over 100 mt compared to December 16. According to the survey, this week coincided with the delivery of the 2412 contract, during which suppliers transferred inventory to delivery warehouses, leading to another increase in the social inventory of lead ingots. At the beginning of the week, multiple regions, including Hebei, Henan, and Anhui, issued smog warnings due to recurring air pollution. Some secondary lead smelting enterprises reduced or halted production due to these conditions, or faced transportation restrictions, which slowed the lead ingot transportation cycle. Additionally, in Hunan, environmental protection-driven production restrictions and smelting enterprise maintenance coexisted, tightening regional lead ingot supply. Downstream lead consumption remained relatively stable. After lead prices jumped initially and then pulled back during the week, some enterprises showed interest in purchasing at lower prices. If production at lead smelting enterprises continues to be restricted, downstream rigid demand may shift to consuming social inventory. On the afternoon of December 18, the smog warning in Anhui was lifted, and attention will turn to the resumption progress of secondary lead enterprises.

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