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

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February 2020 | Base Metals


Lead: Prices still heavy


Lead prices struggled to rebound last week and closed Monday this week at a seven-month low. There are three good reasons for the weakness, including (1) the Wuhan coronavirus is likely to deal a further blow to already weak Chinese vehicle sales, (2) China’s exports of lead are minimal so there is little threat from supply disruptions, and (3) the end of the high-demand season associated with the northern hemisphere winter is approaching. Prices will remain under pressure until it looks like China’s factories and logistics are getting back to normal.

New 7-month price low LME lead prices struggled to rebound last week and closed Monday this week at an ominous seven-month low beneath $1,800 per tonne. Slow return to normality in China a growing threat to Q1 demand The return to work after the Lunar New Year holiday in China has been protracted with many businesses delaying their start-ups until February 10. But with many transport networks still locked down, the return to work is expected to drag on even longer, especially if the spread of the virus has not been contained...

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