It’s been a rough month so far for lead, which, along with zinc, hit multi-year lows last week while sister metal copper also suffered after an assessment of China’s factory health revealed a continuing weakness in the world’s leading metals consumer.
According to a November 11 report from Reuters, lead traded down 1.8% to $1,604.50, having reached a five-year low of $1,582.
“I see some bright spots and some continued softness (in the China data) however there is a definite bearish tone from Chinese and Asian speculators. Shorting has been concentrated during Asian hours, its not entirely clear why, if anything, the supply side looks a lot shakier,” Vivienne Lloyd, analyst at Macquarie, told the news source.
In a note, Commerzbank (DE:CBKG) said the Chinese government and central bank will no doubt have to lean on further stimulus activity in order to improve the economy. This possibility could lead to the support of metal prices.
A Tale of Two Eras for Lead
It’s been an interesting 2015 for lead and other industrial metals, but prior to this year lead was one of the most stable metals around, thanks, in part, to a surplus combined with consistent production versus usage. But 2015 has proven itself to be the year of the bear for all industrial metals, including lead.
How will base metals fare for the remainder of 2015 and into 2016? You can find a more in-depth lead price forecast and outlook in our brand new Monthly Metal Buying Outlook report. For a short- and long-term buying strategy with specific price thresholds:
by Kyle Fitzsimmons