Lead gets boost from Chinese production issues

Dec 19, 2007 | 12:44 PM | Meghann McDonell

Lead regained some ground on the London Metal Exchange Wednesday following news that several companies in Shadian, Yunnan province, had ceased production because of a tax dispute.

Three-month lead closed the final kerb at $2,526 per tonne, up from $2,420 per tonne the previous day.

The gain came despite a 124-tonne rise in LME-registered warehouse stocks, bringing the total as of Wednesday morning to 43,600 tonnes.

Lead production was halted at several companies in Shadian after the government abolished a policy that had reduced their value-added taxes (VAT) to 6.6 percent from 17 percent. Without the preferential rate, lead producers' costs have increased significantly, according to analysts.....





Latest Pricing Trends

Poll

Are you stocking more inventory today than 18 months ago?

Yes
No


View previous results