LME Lead to Remain on Downward Track in 2016 on Strong Dollar

SHANGHAI, Nov. 17 (SMM) – LME lead is predicted to fall further to $ 1,500-2,000 per tonne in 2016 on the back of strong dollar, SMM lead analysts reckon.

Markets expect that US Fed is well on the track to raise interest rate in December. Should December see no rate hike, US Fed will also hike the rate in 2016. As such, US dollar will go up further.

At present, global crude oil inventories has increased to the recorded 3 billion bbl while global daily consumption on crude oil should drop to 12 million bbl in 2016. Consequently, oversupply will still depress crude oil prices.

Given a firm dollar, spot lead prices in China will drop to 12,500-14,000 yuan per tonne in 2016 despite of domestic supply deficit. China’s lead supply surplus finally shifted to a supply deficit of 2,500 tonnes in 2014. A supply deficit of 158,000 tonnes is expected in China in 2015 and 150,300 tonnes in 2016, SMM says.  

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.