It is understood that as of June 27, the in-plant inventory of primary lead delivery brands was 13,300 mt, an increase of 2,100 mt WoW.
This week, due to the intensified impact of maintenance at smelters, the production of primary lead declined compared to last week. Meanwhile, lead prices surged strongly, breaking through the 17,000 yuan/mt threshold. Downstream enterprises were cautious about purchasing due to the high prices. Additionally, during the month-end and mid-year period, large downstream enterprises suspended or reduced their purchases, making it difficult for suppliers to sell their goods. As a result, the in-plant inventory of smelters rose. During the week, the discount for spot transactions in major producing areas widened, with offers reported at a discount of 50-0 yuan/mt against the SMM 1# lead average price ex-factory, and a few as low as a discount of 80 yuan/mt. The spot-futures price spread reached 200-250 yuan/mt, prompting some traders to increase their willingness to buy and transfer to delivery warehouse. Subsequent attention should be paid to the trend of in-plant inventory of smelters transferring to social warehouses.
