Chinese lead export premiums rise as LME stocks dwindle

摘要

Hong Kong—Chinese lead producers aVe raised their FOB China premiums for have raised their FOB China premiums for refined lead exports in the face of declining London Metal Exchange lead stocks, which dipped to 14-year low levels at the end of last month. LME lead stocks hit 37,175mt Jul 30, their lowest level since June 1990, and down from over 100, 000mt at the beginning of the year, though the total nudged higher last week to move back above 40,000mt Aug 6 as modest deliveries into LME warehouses represented the first tentative signs of metal being attracted into warrant by the hefty backwardation on the exchange's lead contract (where nearby prices are higher than forward prices). An official with Chinese lead giant Yuguang Gold and Lead Group in Henan province said the company's FOB China premium for its lead ingot reached $110/mt over LME cash in late July. "This week's premium is lower at $90/mt. but still much higher than just $10/mt in early 2004," the official said last week.