FOCUS: Lead/zinc switch at widest since 2007, but could lead catch up?

The price difference between lead and zinc on the London Metal Exchange has moved to its widest in over 10 years, with lead lagging significantly behind.

At the close on Thursday February 22, the three-month zinc price closed $960.50 per tonne higher than lead. But when the spread - or switch – last moved to over $900 in early 2007, lead staged an incredible fightback and ended up overtaking its sister metal. By the end of 2007, the three-month lead price was $100 per tonne higher than zinc – and history could be set to repeat itself with underlying fundamentals showing a good indication that lead prices can recover. (FastMarkets/Metal Bulletin data) “Historically, lead always catches up with zinc eventually. It has been lagging behind but lead can be a slow burner which...

Published

Archie Hunter

Alice Mason

February 26, 2018

17:09 GMT

London