Global lead short-term outlook June 2020

The lead price performed strongly, gaining almost $150/t during June to fall just short of $1800/t by the end of the month. This 9.1% gain was driven by two key factors: a weakening US dollar but, more significantly, rising concerns over the short-term availability of refined metal - the latter being put into sharp focus by the largest falls in LME stocks for almost a year and with one-third of stocks now cancelled warrants. Mines returning to operation are ramping up production, but some others have had to be idled once more due to new coronavirus outbreaks, adding to worries that a lead squeeze is looming.