Search
AMM.com Copying and distributing are prohibited without permission of the publisher
Email a friend
  • To include more than one recipient, please separate each email address with a semi-colon ';', to a maximum of 5

  • By submitting this article to a friend we reserve the right to contact them regarding AMM subscriptions. Please ensure you have their consent before giving us their details.


Lead

Keywords:


Our base-case cash price forecast for lead had been for an average of $2,610 per tonne in Q2. But at the halfway point of the quarter, prices were averaging just $2,342 per tonne. The underperformance came after a weaker-than-expected period in April, and some spill-over from zinc’s sell-off. 

This encouraged us to lower our Q2 base-case forecast to $2,450 per tonne, though that still allowed for a bullish end to May and a stronger June with trading envisaged to return to a range above $2,400 per tonne.

Indeed, prices are rallying again as we write, attempting to re-establish themselves back above this level. The improvement in price sentiment has been brought about by tightness emerging in China, with SHFE stocks fast becoming depleted and the arbitrage import window opening up. Imports are likely to pick up as a result, tightening the ex-China market, which is already feeling the effects of reduced Iranian supply on account of the country’s currency crisis.

In this regular section, Metal Bulletin Research’s base metals  team summarise their in-depth reports to highlight key factors driving the markets and their short-term price forecasts. The weekly service, Base Metals Market Tracker, provides independent analysis and forecasts for base metals markets and prices.

Request your free sample of this service – email info@metalbulletinresearch.com  www.metalbulletinresearch.com

Have your say
  • All comments are subject to editorial review.
    All fields are compulsory.



.not('[src*="http"]')