Rising production data a last straw for Lead

Lead market experienced sharp declines, with the February-lead on Shanghai Futures Exchange losing 7.74% yesterday and down by its daily limit at the open today.

What’s behind the collapse in lead prices?

“The increasing output data should be the last straw for lead prices,” an analyst from Shanghai CIFCO Futures told SMM in a recent interview.

“Lead prices have been falling this month, and the report that China’s refined lead climbed to a five-month high of 381,941 tons stoked fears for a severe glut in the market, resulting in a slump in prices,” the analyst explained.

Analyst from Ruida Futures also pointed out that noticeable rises in both lead concentrate and refined lead production in November definitely added to a drag on prices which had already been pressured by waning consumption and weak macroeconomic conditions.