Base metals are currently “hot” market items and one of the hottest is lead, whose recent price rise seems to have caught almost everyone by surprise.
Now above the 40 cents (US) per lb mark, and averaging almost 25 cents during the first six months of this year, lead appears to be the beneficiary of low inventory levels.
Ron Harris, manager of lead metal with Noranda Sales Corp., Toronto, said the supply of lead is “relatively snug,” especially in Europe, where some smelters have experienced feeder problems. Also, stocks of the base metal are running lower in North America compared with last year; the shutdown of a major U.S. smelter has had a significant impact on domestic production in that country.
Another factor influencing the market is the lengthy strike at Cominco Ltd.’s Trail and Kimberley, B.C., lead-zinc operations. A strike at Noranda’s Brunswick lead smelter was averted, with workers there approving a new 3-year contract.
World output of refined lead in 1986 among western-producing nations totalled 3.99 million tonnes, down from the almost 4.2 million tonnes produced in 1985. Lead prices have been averaging in the 18 cents -20 cents range the past four years.
The major use for lead is as a component in the manufacture of batteries, and in particular, automobile batteries.
Meanwhile, the spot price of copper is closing in on 80 cents per lb, with the price of that base metal also appearing to be benefiting from smaller inventories. To the end of June this year, the price of copper was averaging 66 cents , 4 cents above the metal’s 1986 average price.
Be the first to comment on "Lead turns `hot’ performer"