According to a recent report from Reuters, three-month lead on the London Metal Exchange surged more than 3% to begin October, its strongest showing since May 2015, stacking on gains from the last session when rising oil prices were also a contributing factor.
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“Lead, which has underperformed the other base metals for much of this year, has been catching up in the past couple of months … with contraction in lead mine supply and refined lead, Caroline Bain, senior commodities economist at Capital Economics, told the news source.
According to the Reuters report, mine shutdowns on a global scale over the past year, as well as lead producers’ activity in curbing output due to low prices, have tightened global supplies of lead, which is used to make batteries.