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.