Total LME lead stocks were now at their lowest level in a decade, with the amount of deliverable material now down to just 61,125 tonnes. More than 40% of on-warrant material is held in LME-listed warehouses in Antwerp.
The metal’s three-month price, which has consolidated below $2,100 per tonne for much of February, jumped during afternoon trading to reach its highest level since August 2018 amid a fresh cancelation of 14,500 tonnes.
“Lead prices are consolidating within the overall up-channel from the early October lows, although the fresh cancelations today are likely to put further pressure on already low global stocks,” Fastmarkets analyst Andy Farida said in his Lead Today report.
“Yet we maintain our view that notably higher prices are likely to depend more on broader macroeconomic factors, particularly the outcome of trade negotiations,” he added.