A strong start to the year saw lead head the base metals complex in a price rally driven by fresh supply concerns. The LME price peaked at $2390/t, near the November high point, before settling back to $2355/t at month end. A substantial single holding of LME positions and volatile trading in the run-up to the Chinese New Year break stretched the cash to 3-month price spread to a six-year high $52 backwardation before relaxing back to a $1/t contango. Cancelled warrants doubled to over a third to total stocks and may herald movement of tonnage from Asia to Europe. Treatment charges remained flat from last month at around $15/t CIF MCP but a reduced SHFE/LME arbitrage reduced total revenue on concentrates by 80%.
This report includes 2 file(s)
Global lead short-term outlook January 2017 PDF - 455.71 KB 27 Pages, 12 Tables, 11 Figures
Data tables lead STO January 2017.xls XLS - 263.00 KB
As global demand weakens and commodity prices fall, we're seeing a challenging environment in the metals and mining industry. Mining companies are increasingly coming under pressure to reduce operating costs, causing many to shift their strategic planning, delay new investments and look to long-term future growth.
This Lead Short Term Outlook report provides a detailed breakdown of global supply and demand balances in this market, as well as price forecasts.
Mining companies, investment banks and investors can use this report to understand the future direction of the ferrous and base metals market. It will also help you assess the impact of key industry issues and events on market balances and pricing.
From acquisitions to investments, Wood Mackenzie helps you plan, forecast and benchmark in the metals markets. Our proprietary database and analyst expertise combines robust production, consumption and pricing data with detailed analysis to identify market opportunities.
We give you a holistic view of the ferrous and base metals markets so you have the confidence to make strategic decisions.
Wood Mackenzie's clients include every major player in the global energy, metals and mining industries. We are recognised as a leading authority by international and national energy, metals and mining companies, leading financial institutions, governments and government agencies. We work with a range of diverse teams within our clients, from strategy and policy makers, business developers and market analysts, through to corporate finance, risk teams and investors.
Having Wood Mac analysis is table-stakes. Others are nice to have.
Analyst Metal Mining Producer
Wood Mac has the highest quality data and is demanded by our staff.
Portfolio Manager Integrated Oil Company
Others can provide data but we value the quality of the Wood Mac analysis above other sources.
As the trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, we empower clients to make better strategic decisions with objective analysis and advice. Find out more...
Commodity market report | Feb 2017
Global lead short-term outlook January 2017
Have questions? Just let us know how to contact you and we will respond to you as soon as possible.