Shanghai lead falls to a-month low on concerns of greater secondary supply

Published: Sep 17, 2019 15:50

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Reopen of Nyrstar's lead smelter in the state of South Australia could also account for the lower prices

SHANGHAI, Sep 17 (SMM) – Shanghai lead prices tumbled on Tuesday September 17 on concerns of domestic higher supply of secondary lead and slower-than-expected implementation of environmental cuts before the National Day parade on October 1.

The most-traded October lead contract on the Shanghai Futures Exchange fell to nearly a-month low of 16,770 yuan/mt, before it ended down 3.17% at 16,825 yuan/mt.

Demand outlook for lead metal weakened amid a slew of bleak economic data recently released by top consumer China. This, together with news on Monday September 16 that Belgium's Nyrstar temporarily reopened an old lead processing plant in the state of South Australia, could also account for the slump in lead prices.

Nyrstar’s lead smelter in Port Pirie, Australia, was suspended after an incident in early August. Data on Nyrstar's website showed that Port Pirie produced 160,000 mt of lead in 2018.

Market commentary Futures movement Lead

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