According to reports, as of January 15, the in-factory inventory of primary lead delivery brands reached 24,100 mt, an increase of 1,500 mt WoW.
Primary lead smelting enterprises maintained relatively stable production this week, while lead prices held up well. Downstream enterprises generally adopted a wait-and-see approach with limited procurement, making it difficult for smelters to sell their products, leading to another accumulation of in-factory inventory. During this period, the spread between futures and spot prices widened to over 200 yuan/mt (against the SHFE lead 2602 contract), with mainstream producing areas quoting at premiums of -60~0 yuan/mt against the SMM #1 lead average price ex-works. Amid sluggish lead consumption, the widening spread between futures and spot prices prompted more suppliers to opt for shipping to delivery warehouses. As more lead ingots are relocated to warehouses, the inventory pressure on smelters' in-factory inventory is expected to ease.
