Lead prices hit a two-and-a-half-month low of $2,443.50 earlier today and closed down 2.1% after recent stock inflows eased the nearby spreads significantly. The cash/three-month spread is now at a $6.15-per-tonne contango from a $6-per-tonne backwardation on Monday.
“Our cautious short-term outlook toward lead appears justified judging by current price action. Speculative investors are unwinding extended speculative net length after failing to vault overhead resistance,” Metal Bulletin analyst James Moore said.
“And recent stock flows have also softened the fundamental backdrop somewhat… Prices are likely to remain under pressure for the moment,” he added.
Zinc also dropped - a report from...