Indian buying continues despite lead backwardation
- London Metal Exchange three-month lead spread was in a $54.50-per-tonne backwardation on Tuesday February 25
- No sign of physical tightness is seen; live lead stocks on the LME rose to 65,325 tonnes on Tuesday, up from 58,500 tonnes last Tuesday
- The International Lead and Zinc Study Group (ILZSG) said European refined zinc usage dropped to a five-year low in 2019
- Lackluster spot trading seen in zinc markets with premiums unchanged across different markets
Lead tonnages continued to be sold into India during the past week at a stable premium range, even as the backwardated cash-to-three-month spread on the LME widens.
The premium for 99.97% lead ingot on a cif-India basis
was stable at $65-120 per tonne as buying interest remained high on a softer commodity price.
The LME three-month lead price has lost 5.4% since the start of 2020, but...