For January, lead prices are down nearly 10% and that is after a December rebound that our own Raul de Frutos followed very closely.
“After surging 10% in December, lead prices have already given up all those gains in the first half of January,” de Frutos said. “Like the rest of base metals, lead prices fell in January as global stock markets sold-off on China’s worries. The metal is now trading near multi-year lows.”
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For the short term, with US markets shut down for the Martin Luther King, Jr. holiday, lead, aluminum, tin and zinc gained slightly with copper climbing 1.1% to $4,378 a metric ton and nickel rising 2.3% to $8,590 per mt on the LME, according to a report from Bloomberg Business.
Day traders for lead and other metals will continue to keep a close eye on China’s gross domestic product with the country expected to report annual growth of 6.9%, the slowest rate of growth since 1990, according to Bloomberg.
“The persistent downward trend for industrial base metal is still in play, and the downward skew is very much dependent on the stagnant growth in China,” Naeem Aslam, chief market analyst at Avatrade in Dublin, told the news source.
How will base metals fare in 2016? 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: