Lead staged a reversal of fortune in June after a dismal May. Increasing evidence of a global refined lead deficit fuelled concerns over supply and triggered a strong rally for lead to reach $2292/t. The steep increase in price shock off any linkage to dollar strength to hit a three month high and outperform the other LME base metals. Raw materials supply problems are not disappearing with treatment charges for concentrates remaining at the previous month's very low level of $40/t on the Chinese spot market. Added to this is a growing sense of scrap supply tightening in the secondary sector especially in China and the US. This situation will only become worse as a number of Chinese recyclers resume production after temporary shutdowns.