December Lead Price Forecast: Chinese Investors Bullish

by Kyle Fitzsimmons on DECEMBER 21, 2015

As the year draws to a close, and a bearish year at that for the metals market, it’s crucial to take a step back and look at where each individual metal you source is at price-wise: For lead, things could be looking up sooner rather than later.

The latest Shanghai Metals Market survey of 30 industrial insiders revealed that 37% of them envision lead on the London Metal Exchange to increase this week.

In fact, SMM reports that LME lead is expected to move between $1,670 and $1,710 per metric ton during Asian trading hours on Dec. 17. Of note is the Fed announcing an increase in its benchmark interest rate by 0.25%, which was met with little resistance or support from the base metals market.

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Supply/Demand for Lead

One factor that supports a price resurgence in lead’s favor is its supply/demand equation that appears to be more balanced than other industrial metals. However, lead will have a difficult time bucking its bearish trend in 2016 due to the current negative sentiment surrounding China, as well as a strong dollar.

China makes up over 45% of the world’s lead demand, but as long as the Far East nation remains in economic turmoil and its lead demand suffers as a result, this metal will continue on its bearish path.

How will base metals fare for the remainder of 2015 and into 2016? You can find a more in-depth tin price forecast and outlook in our brand new Monthly Metal Buying Outlook report. For a short- and long-term buying strategy with specific price thresholds:

Source: Metalminer