The three-month lead price hit a high of $2,668 per tonne earlier today, the highest since July 29, 2011, and closed just $3 shy of this high level.
“The fundamental outlook for lead is strong with low exchange stocks while consumption is constant. The near-term tightness is reflected in the forward curve with backwardation out to 2020,” Sucden Financial noted in their quarterly metals report.
“The cold winter, we believe has likely supported replacement battery demand. Lead momentum is on the front foot, supported by the weaker dollar, and prices could advance towards $2,700 per tonne,” it added.
LME stocks continue to dip, now down 6.3% so far in 2018, with warrants...