Global lead short-term outlook June 2022
Lead plunged in value during June, losing 11% of its value, briefly crashing through the $1900/t barrier for the fist time in over a year, before recovering to finish on $1907/t. Yet this dismal showing was still the best among the key LME metals. Souring sentiment across markets, triggered by interest rate hikes, the faltering release of Chinese lockdowns, the long-term effects of the Russian war on Ukraine, plus an overall lack of belief that things would improve dragged down on prices all month. Overall exchange stocks were flat, with a small rise in LME metal counteracted by a dip in China. Refined metal premia were showing signs of retreat from historical highs with signs of slight demand easing. June’s spot TCs for low-silver concentrate in China were again lower than the previous month. Spot TCs reduced by another $10/t to $125/t CIF MCP, with RCs down to $1.20/oz.