Global lead short-term outlook October 2018
Lead appeared unable to free itself of negative sentiment and dropped 5% of value over the month after some sharp price fluctuations. This was despite LME stocks hitting a 10-year low and portents of potential acute supply tightness. A 20 kt reversion of stocks from cancelled to live warrants seemed to give markets sufficient excuse to knock down price still further, even as total stocks continued to fall. Mine production growth in Q3 disappointed with several producer falling short of expectations and keeping the concentrate market tight - but not enough to push annual contract TCs sharply higher.