It’s been a rough 2015 for lead, after years of strength, and the latest developments indicate a recovery may still be a way’s away.
Lead, along with zinc, continue to trade lower due in part to weakening global trends and slowing economic growth in China, a major consumer of the non-ferrous metal.
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We reported last month that lead, along with zinc, have a fairly neutral supply/demand situation with production outpacing demand by just a bit. But that doesn’t take into account global weaknesses, including China’s economic crisis, which have severely affected the trend direction of the metal.
Prior to China’s economic woes, the lead market had been on the upswing, due in part to a surplus in recent years and prolonged stability in production compared to usage dating back to 2013. That is no longer the case now, however, and we will keep a close look on the situation in China as it relates to the state of lead prices.
You can find a more in-depth lead 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: