Global lead short-term outlook June 2023
The suspension of operations at Peñasquito appears to have provided support to the rally in lead prices in June. Such fundamental support is justified because the lead concentrate market is already tight. Unlike smelter cuts, which can merely result in raw materials being diverted elsewhere, Peñasquito 's lost output will result one-for-one in reduced output of refined metal. Strong OE automotive figures were also supportive on the demand side of lead's market fundamentals. However, the wider macroeconomic picture has been less robust recently, particularly in China.