Speaking at this year’s virtual LME Week, Mulqueen said the high level of London Metal Exchange stocks and a lack of strong speculative support are also pressuring the lead price.
“Long-term, lead lacks the buzz factor like other metals. It is being supported by pent-up battery demand, but it is lacking a longer-term demand narrative,” Mulqueen said. “It is reflecting its weaker fundamentals… the lead price continues to underperform moving into 2021.”
The LME three-month lead price is currently trading at $1,765 per tonne, 23% lower than this time last year when the price was $2,186 per tonne.
“The lead price has correlated pretty well with the other base metals this year and this is because of the strong influence of macro...