LONDON: Lead hit its highest in nearly three months on Thursday as a plunge in available LME warehouse stocks fed into this week’s price rally, while copper edged up after the previous session’s sharp losses.
Lead is the biggest riser among industrial metals this week, climbing more than 7 percent since last Friday’s close.
The drop in on-warrant lead stocks to the lowest level in five years is feeding into Thursday’s price rise, Commerzbank analyst Daniel Briesemann said, though other factors were at play in the metal’s broader rise this week.
“Financial investors are long lead and short zinc at the moment,” he said. “The technical picture has clearly brightened for lead. The price has just closed above the 100 and 200-day moving averages, and it also looks to have exceeded the $2,500 mark, which could lead to some follow-up buying.”
The lead market deficit exceeded most expecations in the first quarter, he added, though it is likely to narrow.
Copper recovered some lost ground after Wednesday’s 1.6 percent fall, though appetite for risk remained fragile after U.S. President Donald Trump called off a planned summit with North Korean leader Kim Jong Un.
Source: Brecorder
