Over the last month the LME 3-month lead price has continued to slide, dipping (albeit briefly) below $1,800/t to close at its lowest level for nearly three years on 14 May. The decline largely reflects movements in the wider LME metals group, which have all dropped on increased concerns over the outlook for the world economy and renewed tension between the USA and China with the escalation of the trade war. For lead, the sell-off has also come as the metal moves into the period for seasonally softer consumption. Producers in both North America and Europe report seasonally slower demand, although it should be noted this is in line with expectations and consumers continue to take contracted tonnages. Moreover, demand in China is still soft and the market well supplied, and the narrow SHFE/LME arb means that there is little demand for imported metal.
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