Lead price to see slower increase on dispersed restocking
Lead price increase in January may disappoint suppliers as their hope on restocking ahead of the Chinese New Year holiday in mid-February may not materialise the way they anticipated.
SMM learned that downstream storage battery companies planned to scatter their restocking activities due to rising lead prices. Sources told SMM that they would extend the restocking period to two months, from the usual one month, to avoid having the lower hand in price negotiations.
The December average of SMM 1# lead price stood at 18,972 yuan/mt, up 305 yuan/mt from November. The increase was due to tightened supply as primary and secondary lead smelters cut production following stricter green policies and gas rationing measures.
SMM believed that a dispersed restocking schedule could limit the upward momentum in lead prices.