Global lead short-term outlook June 2021

Lead was at or near the front of the base metals on price performance during June. But rumours of problems at a major primary smelter right at the end of the month sparked a sharp price spike and thrust lead well ahead of the pack. No substance emerged to support the rumour, but nor has the possibility been eliminated beyond doubt yet. The strong and swift market reaction pushed the lead price up to a three-year high, breaking through the $2300/t barrier. The lead price also survived negative influences pulling down other metal prices to gain 6.3% of value during June. New mine supply was confirmed this month, but will not make a meaningful contribution until 2024. In the meantime, concentrates will continue to be tight and TCs under pressure.