LME OFFICIALS: Massive warrant cancellations propel lead above $1,820

Lead prices soared in official trading on the London Metal Exchange on Monday March 23, following the cancellation of almost 100,000 tonnes of warrants – equal to about 50% of all lead stocks – in various locations.

“Overnight, cancelled warrants have gone from barely 5% of total LME inventory to 46%. The cancellations were deliberate and took place throughout Europe and Asia. Various theories about why the cancellation took place are doing the rounds, though it seems the most likely to be a large position transfer,” Standard Bank said in a note. Three-month lead settled at $1,810/1 per tonne compared with $1,775 per tonne at the open. The contract traded to an intraday high of $1,827.5 per tonne and dipped no lower than $1,772 per tonne. The cancellations...


Janie Davies

March 23, 2015

16:00 GMT