Frantic chatter during LME Week and a price rally triggered by frenzied short covering were the immediate consequences of Glencore's shock announcement on the eve of LME Week that 120kt of mine production would be cut from now until the end of 2016. The news briefly offset some of the gloom sitting heavily on the base metals complex and lead once again showed its fundamental soundness by gaining 5% of value over the month to outperform the LME complex. Demand for refined metal in the peak of the battery demand season is finely balanced in North America but is outstripping the availability of secondary raw material in Europe, sending scrap prices much higher than the LME price increase to $1712/t warranted.
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As global demand weakens and commodity prices fall, we're seeing a challenging environment in the metals and mining industry. Mining companies are increasingly coming under pressure to reduce operating costs, causing many to shift their strategic planning, delay new investments and look to long-term future growth.
This Lead Short Term Outlook report provides a detailed breakdown of global supply and demand balances in this market, as well as price forecasts.
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Commodity market report | Nov 2015
Global lead short-term outlook October 2015
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