Global lead short-term outlook November 2021

Relative stability returned to lead markets, after rather more volatile recent months. Together with the majority of the base metals pack, prices slide backwards somewhat in November by a similar degree, with the exception a stronger performance from nickel. The cash to three-month price backwardation has entered its fifth month, except for a couple of very brief and small periods of contango, so pressure remains on the front end of spreads. Spot TCs for Chinese imports were unchanged but some negative pressures are building from some falling by-product values, although offset by the narrowing negative arbitrage.