Research

Forecasts and market analysis based on price assessments from Fastmarkets MB and Fastmarkets AMM

Change font size:   

November 2018 | Base Metals


Lead: Building a base


Lead prices found support at $1,886 per tonne on October 31, which was above the October 11 low, but the rebound later last week to $2,026 per tonne, fuelled by hopes of some progress on US/China trade, was short lived. Prices are once again trading around the $1,950 per tonne level. A pick-up in volatility may mean a base is being hammered out, but for now prices are stuck in a sideways-to-lower trend despite the tight fundamentals that we think warrants a more buoyant price.

36,275 tonnes of cancelled warrants re-warranted over 3 days... On Friday October 26, LME lead cancelled warrants stood at 46,950 tonnes, or some 42% of total stocks. By Friday November 2, only 8% of the LME lead warrants were on cancelled status. The re-warranting means the metal stocks are now available to provide liquidity to the market. ...lessening the chance of a short-squeeze The drop in cancelled warrants, and increase in available warrants, means there is now less chance of a short squeeze on lead, as there are now 103,700 tonnes of metal in...

ACCESS RESTRICTED

To read the rest of this analysis please take a free sample or subscribe


FREE Sample


Receive a free sample of  market analysis and price forecasts.

Free Sample

SUBSCRIBE


Receive unlimited access to all current and archive content going back to 2008 including downloadable pricing data and forecasts. Plus download the latest issue as soon as it’s published.

Subscribe


Already subscribed?