Supply fears continue to drive lead to new highs

Print this page Posted on : 10-12-2007 by recycleinme.com

Lead hit a new high at the London Metal Exchange on Thursday, supported by a tight supply outlook combined with strong demand from battery makers, analysts said.

The metal ahs outperformed other LME contracts, and indeed most other assets, with gains of 130 per cent since the start of the year.

By 1030 GMT, lead for delivery in three months traded up to $3,890 per tonne on electronic dealing system Select, surpassing its previous peak of $3,885, which it struck on Tuesday.

Despite these high prices, users of the metal have little choice but to continue buying, analysts said.

Users of steelmaking raw material nickel started reducing their consumption of the metal when it hit $50,000 per tonne, though such a move was mooted when nickel was cheaper.

High prices may encourage recycling of lead.

COPPER STEADY

Copper, often seen as a benchmark of the metals market, was quoted at $8,150/8,160 per tonne, down $40 from Wednesday’s final open outcry session.

At around $8,150, it is up more than 25 per cent since the start of the year.

Aluminium was steady at $2,466 after rallying 1.8 per cent on Wednesday.

Nickel was at $32,200/32,400 per tonne, up $705 from Wednesday’s close, zinc was up $32 at $3,097/3,104 per tonne and tin was up $25 at $16,000/16,200 per tonne.

Source : Business Line