A life can be conceived and born. Economies can thrive and collapse. Most importantly to you, though, lead can experience its biggest daily loss over in that time period due to a jump in inventories.
According to a recent report from Reuters, lead suffered its most significant single-day loss over a nine-month period this past week. It dropped more than 3% following a spike in inventories signifying that this market is well-supplied.
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“I don’t really think that there’s any particular shortage of lead,” Citi analyst David Wilson told Reuters. “The key market in lead is China and that’s been pretty weak.”
Data further revealed that lead inventories at warehouses registered by the London Metal Exchange climbed 10%, equaling 18,325 metric tons in a single day. In addition, according to Reuters, three-month LME lead declined 3.1% to close at $1,734.50 per mt, its weakest point since February 2.
Meanwhile, it’s been shown the global lead market surplus rose to 63,000 mt in 2015 compared to a surplus of 10,000 mt in 2014.
While lead has rallied 17% from the middle of January to this past week, Wilson told the news source he does not see that move as based on fundamentals. “My feeling is that the move at the back end of January was pretty overdone,” he stated.
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