by Kyle Fitzsimmons on MARCH 21, 2016
Lead prices increased 0.36% in futures trade last week due in part to a boost in spot market demand and gains in overseas base metals.
According to a report from the Business Standard, lead for delivery in March and April at the Multi-Commodity Exchange both increased 0.36% with market analysts claiming the rise in lead futures was due to speculators enhancing their positions in the face of high demand from battery manufacturers in the spot market.
Want a short- and medium-term buying outlook for aluminum, copper, tin, lead, zinc, nickel and several forms of steel? Subscribe to our monthly buying outlook reports!
Base metals have firmed up overseas on speculation that China’s investment in fixed-asset projects will spark demand for raw materials, which in turn has influenced metal prices, according to the Business Standard.
Industrial metals as a whole off to a strong 2016
After what we identified as a disastrous 2015 for industrial metals, three months in, the new year is showing a different story with every single base metal up in price year-over-year, according to our own Raul de Frutos.
“The main driver causing metal prices to rally this quarter is the oil price recovery that’s been happening since February. Lower fuel prices have compounded the longest commodity slump in a generation as oil is also key input in the cost of producing industrial commodities,” de Frutos stated.
He did add that although there is optimism with the latest metal price trends, there is still confusion on whether the drivers of these increases can continue to push them higher.
You can find a more in-depth lead price forecast and outlook in our brand new Monthly Metal Buying Outlook report. Check it out to receive short- and long-term buying strategies with specific price thresholds.
Source: MetalMiner