LIVE FUTURES REPORT 31/01: LME lead recoups losses in 2.8% uptick; tin follows up

The London Metal Exchange three-month lead price was higher by close of trading on Friday January 31, regaining the bulk of losses made earlier in the week against moderately low turnover, while tin futures similarly made gains over the afternoon.

Lead’s underlying price on the LME closed at $1,879 per tonne this afternoon, recovering from an intraday low of $1,828 per tonne, while turnover was at its lowest since January 24 at just over 4,400 lots exchanged on the day.  Yet the metal’s sharp price decline has been hard to gauge for many market participants looking closely at the lead complex, this is largely due to a robust supply surplus forecast - estimated by the International Lead and Zinc Study Group (ILZSG) at 55,000 tonnes - in addition to low exchange stocks and dip-buying momentum.  Total LME lead stocks remain little moved since the start of December 2019 at 66,800 tonnes, while on-warrant material remains at 50,850 tonnes.  Meanwhile, LME zinc spreads narrowed over...


Hassan Butt

January 31, 2020

17:38 GMT