Lead cools down
Lead | 2014-11-07 07:31:23
According to the analysts from the Commerzbank, lead is falling out compared to other base metals, with a bunch of hazardous investors, there is a high chance of lead facing a production decline by the end of this, as commented in the previous forecasts.
By Paul Ploumis
LONDON (Scrap Monster): The base metal lead is being avoided in the market, which can be proven the present situation where, the metal has now only 3,373 contracts by the end of October, at the place of 25,700 contracts in the month of August.
According to the Lead and Zinc Study Group, stated that, to a great extend the worry of the market might come true, as there are chances that, the market will face at least 38,000 tonnes of lead production deficit. The study group also added that, this might be caused by the sudden decline in the Chinese demand for the metal.
In the beginning of this year, according to the analysts, the total exports of refined lead in China reached a higher limit of 25,000 metric tonnes, the maximum, since the year 2007. According to the analysts, the hike in the price of zinc is another reason for the deficit in the export of zinc in China, as they are increasing the production of zinc along with lead.
