Limited supply from smelters and improved consumption continued to weigh on social inventories of primary lead in Shanghai and Guangdong this week.
Inventories across the two regions fell by 2,300 mt over the week ended August 31 to 9,600 mt. This came after a decline of some 2,100 mt in the previous week.
Smelters in Henan and Yunnan provinces have not resumed operation from maintenance, and this lowered their supplies. Purchasing enthusiasm across downstream battery plants surged when gains in lead prices slowed in the middle of the week.
Downstream consumers favoured primary lead, which was offered by smelters up to a premium of 50 yuan/mt over #1 lead as of August 31. Offers for secondary refined lead mostly stood at a discount of 50 yuan/mt to flat over #1 lead on Friday.