SHANGHAI, Apr. 17 (SMM) – Lead prices on Shanghai Futures Exchange rose by another 285 yuan per tonne for night session Thursday, and those on London Metal Exchange also climbed to $2,045.5 per tonne. Markets now expect lead prices to continue trending up on tightening supply.
The closure of Australia’s Century mine and Paroo Station lead mine is expected to cut global refined lead production by 1.3%.
Availability of secondary lead which makes up 54% of global lead supply is also set for a decline as previous price falls have undermined selling interest of scrap battery suppliers.
“In addition to falling supply, growing long positions will be another contributing factor to lead price rally,” SMM’s Zhu Rongrong said.
LME reported net long positions – which look set to increase – in lead since the latter half of March. This occurred at the same time when cancelled warrants registered an about 100,000-tonne rise. The combination of decreasing supply and increasing long positions are considered the major driver behind recent lead prices.
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