Last week, lead prices registered a new 6-month low on the LME. This move doesn’t really come as a surprise. The industrial metal sector keeps trending down and lead prices seem not to be an exception.
As we commented previously:
“Lead prices might keep gaining support during the coming months. However, the uptrend is far from being strong, and we still don’t see lead trading above $2,500 per metric ton on the LME. It might make sense to wait until prices show real strength before taking long-term commitments.”
This recent move proves to us that the bulls are not in control and we could see further weakness in the coming months. In either case, we remain rather neutral on lead and until the metal sector recovers, we don’t see lead prices trading well above today’s levels.
What This Means For Metal Buyers
Lead gave bearish signals this month. The base metal seems incapable of reaching new highs. We’d recommend buyers think twice before taking long-term positions.